Suppliers fail to deliver stock to Central Medical Stores
The Ministry of Health and Social Services has cancelled pharmaceutical and clinical product orders worth N$44.8 million after suppliers allegedly failed to deliver medicines to the Central Medical Stores (CMS).
The orders, which were extended to 12 companies, included medicine for mental illnesses, cancer treatments and medication for chronic conditions to state hospitals.
Other orders were for diabetes, high blood pressure and life-threatening bacterial infection medication.
The orders were submitted in 2025.
The relevant suppliers were tasked to deliver N$44.8 million worth of orders, of which N$29.8 million involved pharmaceutical supplies (local) and N$14.9 million involved pharmaceutical supplies (manufacturer orders).
In an internal submission dated 17 February and signed by pharmaceutical services director Naita Nghishekwa, the health ministry sought approval from the procurement committee to cancel outstanding purchase orders issued under several procurement contracts.
The document states that the affected suppliers were awarded contracts to supply pharmaceutical and clinical products to the CMS, but failed to fulfil their obligations after purchase orders had been issued.
“After issuance of purchase orders, the suppliers failed to deliver the required items due to several challenges,” Nghishekwa says in the submission.
Contacted for comment last week, Nghishekwa referred questions to the ministry’s spokesperson, Walters Kamaya, who directed The Namibian to the latest public update notice released on Thursday.
The notice says the government is buying medication to address the immediate need for critical medicines.
“Since 15 May 2026, a total of 37 line items of critically needed medicines have been received and distributed into the supply chain.
These deliveries form part of ongoing efforts to replenish stock levels and improve the availability of essential medicine supplies across public health facilities,” executive director of health and social services Penda Ithindi says in the update.
The suppliers affected by the cancellations range from large pharmaceutical firms to smaller distributors, with the highest-value orders recorded for Windhoek Medical Solutions (N$16.8 million), followed by Cipla Medpro (N$7.3 million) and Oshakati Pharmacy (N$7 million).
Windhoek Medical Solutions couldn’t be reached for comment last week.
Cipla chief executive Paul Miller on Friday said the company is aware of challenges regarding the delivery of medicines to the CMS.
“The circumstances surrounding their fulfilment are complex and delivery timelines have been impacted by a combination of factors, including global supply chain constraints, regulatory requirements, some of which were beyond Cipla’s direct control,” he said.
“Given the sensitive nature of this matter, Cipla will continue engagements directly with the relevant authorities,” Miller said.
Oshakati Pharmacy’s Piet Williams last week confirmed the business had an outstanding purchase order relating to the supply of co-trimoxazole to the CMS.
He said he, however, does not agree that the products were simply not delivered.
“The product has been available for delivery since August 2025 and was presented for delivery to the CMS. At that stage, a query was raised regarding the manufacturing site’s registration details, resulting in the product not being accepted pending regulatory clarification.
“Oshakati Pharmacy subsequently provided all documentation and information requested by the relevant authorities and complied fully with all requirements communicated to it,” he said.
Williams said Oshakati Pharmacy did not receive notification that the purchase order had been cancelled.
The original purchase order was subsequently replaced by a new purchase order issued on 26 May, albeit for a reduced quantity, he said.
“The product remains available for delivery, and Oshakati Pharmacy is awaiting final feedback from the relevant regulatory authority in order to proceed with supply,” he said.
Williams said Oshakati Pharmacy takes its responsibility to the public healthcare sector seriously and recognises the importance of uninterrupted access to medicine.
He said throughout this process, the company has acted in good faith, complied fully with all requirements communicated by the relevant authorities, and remained committed to supplying the product.
“We, therefore, do not believe it would be accurate to characterise the situation as a failure by Oshakati Pharmacy to fulfil its obligations.
The matter rather relates to an ongoing regulatory process concerning manufacturing site documentation, despite the product being available for supply,” he said.
Other suppliers that allegedly failed to deliver include Mozart Medical Supplies (N$3.9 million), Medican Biotec (N$3.7 million), Econo Investments (N$1 million), and Nampharm (N$363 000).
These suppliers did not respond to questions sent to them by the time of going to print.
Lower-value cancellations were recorded for Royal Allianz Medical Supplies (N$160 000), Pfizer (N$124 000), and Emcure Pharma (N$56 000), which did not respond to questions sent to them either.
B Braun, a German medical and pharmaceutical device company, had its order of N$44 000 cancelled.
B Braun spokesperson Mechthild Claes says the cancellation relates to two tender line items for hernia meshes.
Hernia meshes are surgical implants used to reinforce weakened abdominal tissue during hernia repairs.
Acting as a stabilising matrix, they allow the body’s natural tissues to grow through the mesh.
“Due to an unforeseen global shortage of raw materials required for their production, we were unfortunately unable to meet the agreed delivery timeline.
To help ensure continuity of patient care, we recommended to source these items from an alternative supplier who was able to provide immediate delivery.
The health ministry confirmed the cancellation,” Claes says.
“We remain committed to ensuring a reliable supply of our products and to working closely with all relevant stakeholders to support patient care,” she says.
The health ministry has listed the reasons for the non-delivery as non-responsiveness to delivery timelines, delays in obtaining Section 27 approvals from the Namibia Medicines Regulatory Council, the rejection of products because of short shelf life, product manufacturing discontinuations, and supplier-initiated cancellations.
The ministry says contract management had already informed suppliers about the intended cancellations.
“Contract management has formally notified the suppliers of the overdue orders cancellation and accorded a seven-day notice period prior to the official cancellation of the orders in accordance with the internal standard operating procedures,” Nghishekwa says.
She says cancelling the orders is necessary to protect the ministry from further procurement and supply-chain risks.
“The cancellation of these orders is necessary to prevent unnecessary financial commitments, mitigate supply risks associated with delayed or non-delivery, ensure procurement activities remain aligned with updated demand forecasts, uphold supplier performance and reliability standards, and comply with regulatory and quality assurance requirements,” Nghishekwa writes.
The procurement committee was subsequently asked to endorse the cancellations and authorise the CMS to implement the decision and formally notify the affected suppliers.
The cancellations come as the health ministry continues efforts to strengthen medicine procurement and supply-chain management amid ongoing concerns over medicine availability in the public healthcare system.
Two weeks ago, The Namibian reported that president Netumbo Nandi-Ndaitwah directed the Namibia Central Intelligence Service to vet over 360 health ministry employees following allegations of fraud and corruption.
The officials are mostly from the Ministry of Health and Social Services’ pharmaceutical services directorate at the CMS, which has been rocked with allegations that government employees colluded with Namibian tenderpreneurs to rig medical tenders and manipulate orders worth hundreds of millions of dollars.
Medicines registrar Fransina Nambahu was removed from her position last month and was replaced by Frieda Shigwedha from 1 June.
