The head of the General Division of Medical Supplies at the Cairo Chamber of Commerce, Mohamed Ismail Abdo, announced that the payment crisis from the Unified Procurement Authority to companies in the medical and pharmaceutical sectors has yet to abate.
This is despite an agreement made on August 11 with the head of the Authority, Hisham al-Metwaly Stet, on an urgent plan to end the crisis.
The plan included disbursing a new installment of the debt to all companies dealing with the Authority during the third week of August in coordination with the Ministry of Finance.
Abdo pointed out that the Unified Procurement Authority has not yet fulfilled its commitments, placing the medical supplies sector in a difficult position that hinders its ability to serve millions of citizens who visit healthcare facilities daily.
He said the General Division of Medical Supplies will submit an urgent memo to Prime Minister Mostafa Madbouly to rescue the sector.
He expressed hope for the personal intervention of both the Prime Minister and Minister of Finance Ahmed Kajouk to implement the agreement, especially as the Authority’s debt to its network of suppliers—members of the division and the pharmaceutical sector—has reached LE43 billion.
This has caused major problems for companies and traders, particularly with foreign suppliers, and has led to a large number of production lines at medical supply factories grinding to a halt due to a lack of liquidity.
Companies have been unable to recover funds that were scheduled to be paid months ago, in addition to facing issues with banks over their inability to meet their financial obligations.
Abdo expressed his confidence in the swift response of the Prime Minister and the Minister of Finance, given their commitment to supporting this vital sector that directly impacts citizens’ lives.
He further hoped they will direct the prompt payment of the medical supplies sector’s dues to prevent problems from escalating and work to find permanent solutions to prevent the recurrence of such a debt accumulation crisis with the private sector.
He explained that the agreement with the Unified Procurement Authority included a commitment from the Authority to continue paying the debt in installments during the current fiscal year.
The Ministry of Finance would therefore be responsible for settling the portion of the debt related to free-of-charge treatment provided by the Ministry of Health’s hospitals, which accounts for approximately 60 percent of the Authority’s total debt.
This follows the Prime Minister’s approval to increase the Unified Procurement Authority’s budget from LE50 billion to LE100 billion in the current fiscal year.
The agreement also included a plan to pay the remaining 40 percent of the debt, which results from the “economic” treatment provided by the Health Insurance Authority, the Universal Health Insurance Authority, and university hospitals, using funds allocated to those entities.
The goal is to complete all payments by the end of the current fiscal year.
Edited translation from Al-Masry Al-Youm
