PUTRAJAYA: The Cabinet has agreed to let Pharmaniaga continue to procure drugs and medical supplies in the next 25 months while it finds another concessionaire in the interim period.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said the interim period would be until Dec 31,2021.
"This is to ensure that there will be no disruption in the procurement of drugs and medical supplies while we carry out an open tender and appoint a new concessionaire," he said after chairing the ministry's post Cabinet meeting on Friday (Nov 8).
Dr Dzulkefly said however if a new concession company could be appointed before the end of the 25 months, the new company would take over.
He also said Pharmaniaga would continue to handle the distribution and logistics for the next five years after the end of its contract on Nov 30.
On Oct 31, the minister had announced that Pharmaniaga's concession to distribute drugs and medical supplies for the Health Ministry would end.
He said there would be no more concessionaire for logistics and distribution services of medical supplies and an open tender system would be introduced instead.
Pharmaniaga has been the sole concessionaire providing these services.
The existence of a concession company was the result of a privatisation initiative undertaken by Tun Dr Mahathir Mohamad during his first tenure as Prime Minister in 1994.