Business news from Ukraine

RADA INDUSTRIAL POLICY COMMITTEE’S HEAD SPEAKS OUT FOR AD HOC GROUP TO ANALYZE INTERNATIONAL DRUGS PROCUREMENTS

24 May , 2017  

KYIV. May 24 (Interfax-Ukraine) – An ad hoc group should be created at the Verkhovna Rada to analyze disputes that emerge during medicine procurements by international organizations at the expense of budget funds, MP of the Radical Party Viktor Halasiuk has said.
“At least an inter-committee working group should be set up [in parliament] to thoroughly analyze such cases. Perhaps, it is worth creating a temporary commission of inquiry in parliament to properly address these issues,” he told reporters in Kyiv on Monday, commenting on a UNDP tender for the purchase of hemophilia drugs when a foreign manufacturer whose bid was higher than that of the Ukrainian pharmaceutical manufacturer Biofarma was named the winner.
“I’m waiting for an official response from Acting Health Minister Ulana Suprun and I hope this situation will end not only the cancellation of the tender and the organization of a new transparent and fair tender where the best bid will win, but there will be appropriate assessment of actions by UNDP officials involved in this procurement,” he said.
Halasiuk stressed that as a result of the tender, the losses of the Ukrainian budget amounted to about UAH 15 million, which could be additionally allocated for the purchase of medicines.
“By such tenders, Ukraine is in fact destroying domestic production with its own hands, as it is not a matter of choosing between an average Ukrainian intermediary company and a big foreign producer, but about choosing between two producers.” The Ukrainian manufacturers have invested $50 million in this enterprise, created 500 jobs and ensures UAH 100 million in tax payment every year,” he said.
Halasiuk noted that only 12 countries have factories that produce human blood coagulation factors. What is more, the products of this Ukrainian enterprise meet all world requirements and standards.
“I have a question as head of the parliamentary committee for industrial policy and entrepreneurship and deputy head of the Radical Party: Why should the domestic producer lose if it offers a more favorable price. Who benefits from this?” he wondered.
Halasiuk said he had sent his inquiries regarding this tender to the acting health minister, the prime minister, the Anti-monopoly Committee of Ukraine, and the business ombudsman.
“This issue concerns not only the patients, not only the industry and the budget, but also the investment climate. If Ukraine this way treats the manufacturer who trusts Ukraine and invested in Ukraine the funds of U.S.-based Horizon Capital, assuming that this Ukrainian enterprise will work for Ukrainian patients, there will be no confidence from investors, “he added.
As of May, only 17% of drugs had been supplied by international organizations with the use of budget funds of 2016, Halasiuk said.
“We will unite all pro-Ukrainian parliamentarians in the Verkhovna Rada and public organizations, producers’ associations in order to resolve this issue in the interests of the state,” he said.