National AIDS Council Acting CEO Albert Manenji yesterday explained to the parliament details surrounding the US$6.9 million debt owed by the government parastatal to the drug suppliers and for meeting the Global Fund pledge.
The parliament summoned the CEO after a petition on the status of HIV drugs in Zimbabwean public medical facilities.
“What happened now is that in 2016 we ordered medicines to the tune of US$7.2 million and out of that USD$7.2 million we were allocated some money then that reduced that debt to US$6.9 million,” Manenji said.
” But, the US$6.9 million… also included the pledge that the government made to the fund of US$700 thousand which means that the actual amount for the for the medicines and radiances was US$6.2 million.”
Zimbabwe pledged US$1 million and the US$700 thousand in the US$6.9 million is part of the million pledge from the government to show commitment in tackling the virus.
“The reason why we had not paid US$1 million for the pledge that you have made as a country was that we then had agreed with Global Fund that we going to do what we call staggering payment agreement where we were then to pay in US$300 thousand; US$350 thousand and US$350 thousand,” explained Manenji.
“We were supposed to pay our first US$300 thousand in 2016 then other US$350 thousand in 2017 and then another US$350 thousand in 2015.”
“However, we were only able to meet the first tranche of US$300 thousand that we did pay and thereafter we had challenges in accessing foreign currency.”
The NAC boss blamed the changes in fiscal policy for failing to pay the drug suppliers stating that when the US: Zimbabwe local currency was as to 1:1 the parastatal could pay the vaccine producers.
“The challenges started manifesting in 2016 when the allocations were coming. So what was happening then was that because of our payment record our suppliers then allowed us to order drugs on credit, then would pay them later,” Manenji said.