Uganda’s National Medical Stores (NMS), entrusted with procuring, storing, and distributing essential medicines and medical supplies to public health facilities, finds itself entangled in a multifaceted crisis. The organization is grappling with employee litigation and staggering losses exceeding Shs60 billion, attributed to the expiration of crucial medical supplies.
Court records and audits shed light on the turmoil within NMS, exposing shortcomings in planning and the interpretation of the Employment Act. The entity’s flawed understanding of its human resource (HR) manual, leading to the dismissal of employees based on perceived deviations from core values, has exacerbated the situation.
NMS lawyers, during a recent case settlement, argued that drug expiration was partly due to the negligence of dismissed employees. This legal battle, initiated in 2008 and settled in 2024, underscored the challenges faced by the organization.
The government’s mandate for NMS to procure essential medicines and health supplies (EMHS) and distribute them to health facilities nationwide involves substantial budget allocations. However, an audit by the Auditor General revealed significant underdeliveries to health facilities, causing drug stockouts and treatment disruptions.
NMS allocated Shs185.9 billion for medications and supplies in the year ending June 2023, but 97 percent of health facilities reported underdeliveries worth Shs26.4 billion. Delayed and irregular deliveries further complicated the situation, affecting patient care.
The chaos of losses extends to the expiration of 5.6 million doses of Covid-19 vaccines, valued at Shs28.2 billion, and a 153 percent increase in non-viable or expired drug stock, reaching Shs33 billion. Anti-retroviral drugs (ARVs) accounted for a significant portion of these losses due to changes in treatment guidelines.
Despite efforts to recover and destroy expired vaccines, NMS is grappling with the aftermath of a costly court battle, incurring over Shs100 million in damages to former employees. The dismissal of 11 employees, accused of negligence leading to operational inefficiencies, was deemed unlawful by the court.
The court emphasized procedural lapses in termination, highlighting the failure to follow the HR manual’s guidelines and the absence of convictions against the dismissed employees. NMS’s management, unknowingly, invited legal scrutiny by terminating employees without due process.
The plaintiffs, accused of multiple infractions, were reinstated based on findings that questioned the accuracy of the audit report. However, they were subsequently terminated again without a clear reason, indicating a tumultuous and legally challenging situation at NMS.
