By Staff Reporter
ADDIS ABABA – (BORKENA) – The Ethiopian Pharmaceutical Supply Agency announced that there is an uncollected debt of more than 1 billion birr for drugs given on credit. Including Black Lion, large government hospitals were unable to pay their debts on time.
It has been stated that 91 medical institutions have been given legal warnings for failing to settle payment debts on time. Out of these, 80 medical institutions have made their payment. Lawsuit has also been filed against 11 institutions , according to a report heard from Ethio-FM 107.8 Radio.
Out of the 11 institutions that have been sued by law, two large institutions have finally been able to pay their debts. Director General of the Ethiopian Pharmaceutical Supply Agency, Dr. Abdulkadir Gelgelo, said that the remaining nine institutions are in the process of litigation and “will pay their debts when the case is over”.
It is stated that there is a contract agreement of drug distribution with 32 big hospitals. The agency provides the medicine and the institutions collect the money at the specified time. According to the report, these 32 hospitals have 76 percent share in drug distribution.
In 2023, 8 billion birr of drugs were sold through a mutual fund, out of which 6 million birr sales were on credit basis, according to the Agency.
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