PHA-Exchange> WHO SETS UP NETWORK TO COMBAT CORRUPTION IN MEDICINES PROCUREMENT

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from Vern Weitzel <vern at coombs.anu.edu.au> -----
         30 October 2006

     **

     *WHO SETS UP NETWORK TO COMBAT CORRUPTION IN MEDICINES PROCUREMENT*

     Huge amounts of money - up to $50 billion - are spent every year on
     pharmaceutical products, a market so large that it is extremely
     vulnerable to corruption.  Recent estimates have shown that as much
     as 25% of medicines which are procured can be lost to fraud, bribery
     and other corrupt practices.


     The World Health Organization (WHO) today launches a new initiative
     to assist governments to combat corruption by promoting greater
     transparency in medicines regulation and procurement. WHO is
     establishing a group of anti-corruption and medicines experts from
     international institutions and countries to promote greater
     transparency.


     Before reaching the patients who need them, medicines change hands
     several times in the complex production and distribution chain,
     providing ample opportunity for corruption. A recent report by
     Transparency International* revealed that in one country, the value
     of two out of three medicines supplied through procurement was lost
     to corruption and fraud in hospitals.


     "This is an aberration when you think that poor populations struggle
     with the double bind of a high burden of disease and low access to
     medical products," said Dr Howard Zucker, WHO Assistant
     Director-General for Health Technology and Pharmaceuticals.
     "Countries need to deal with this problem and ensure that the
     precious resources devoted to health are being well spent."


     Apart from the loss of resources and the danger posed to patients'
     lives, corrupt practices also allow the entry into the medicines
     chain of counterfeit and substandard products, further endangering
     the health of communities.


     Corruption occurs at different stages of the chain and may take on
     different forms:

         * Bribery of government officials to register medicines without
           the required information;
         * Government officials may deliberately slow down registration
           procedures to solicit payment from suppliers;
         * Favouritism rather than professional merit in selecting
           members of a medicines registration committee or in recruiting
           regulatory staff;
         * Thefts and embezzlement in the distribution chain, including
           in health care facilities.


     To combat the problem, WHO plans to strengthen regulatory
     authorities and procurement practices by:


         * Stimulating legislative reform that will establish laws
           against corruption and commensurate enforcement and punitive
           measures;
         * Promoting standardized systems of checks and balances to limit
           or prevent abuse by making publicly available the criteria,
           structures and procedures applied to select regulatory and
           procurement staff and medical products;
         * Encouraging ethical practices through behaviour change
           activities and staff training.


     The first step of the process will be to create a group of
     independent experts and advocates.  Second, the organization will
     compile a data base of best practices and successful experiences
     already tried and tested in countries to promote good governance in
     the public pharmaceutical sector.


     "Corruption is a worldwide problem, rife in high- and low-income
     countries alike, and no country should feel embarrassed to talk
     about it," said Dr Hans Hogerzeil, WHO Director of Medicines Policy
     and Standards.  "But low income countries are the most vulnerable,
     and they are the ones we will initially support in promoting more
     transparent, money-saving tactics."


     A two-day meeting to set out strategies and set up the new
     initiative is taking place at WHO Headquarters, Geneva, on 30-31
     October 2006.


     For more information or to consult experts at the end of either day
     please ring:

     Dr. Guitelle Baghdadi-Sabeti, Technical Officer, Medicines Policy
     and Standards, WHO, mobile. +41 79 5006501; or

     Daniela Bagozzi, Communications Officer, WHO, mobile, +41 79 475 54 90



     *Transparency International, Global Corruption Report 2006

     http://www.transparency.org/publications/gcr



     For WHO's work on good governance in the medicines sector, please see:

     http://www.who.int/medicines/areas/policy/goodgovernance/home/en/index.html



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