President slams private companies for 'deliberate chokehold' on medicine imports

President Dr. Mohamed Muizzu says the recent shortage in essential medicines in the Maldives was because several importers created a deliberate chokehold on import of several types of medicine.

Multiple people have taken to social media in recent weeks to express concern over lack of availability of essential medicines, including those needed by newborns and thalassemia patients.

In a press briefing at the President’s Office on Saturday morning, President Muizzu said the shortage resulted from several importers deliberately stopping the import of certain types of medicine following the government’s decision to cap the price of medicine to reform the public health insurance system, Aasandha.

President Muizzu said that several companies had been supplying key medicines at a markup of around 1,000 percent through the Aasandha system.

“Private companies were getting this money through the Aasandha system. What a huge wastage this was. Such a huge percentage. They began taking profits of several hundreds or even 1,000 or 2,000 percent through Aasandha,” he said.

He said that the government had implemented the cap at a time when several medicine importers had become businesses magnates by taking advantage of the Aasandha system.

He said that some importers had deliberately stopped the import of certain medicine following the implementation of the price cap.

“I ask for their forgiveness. But I will tell you the truth. They deliberately stopped the import of certain medicine to create deliberately create a chokehold,” he said.

President Muizzu said that the State Trading Organization (STO) did not have enough time to address the medicine shortage it created, but was now working on addressing this issue.

As such, President Muizzu said that:

• STO now has 784 out of 1,207 generic medicines on the approved list of medicines available with them.
• STO now has all essential medicines available with them, except for 10 medicines.
• The government will be implementing revised prices of 77 medicines sold by private companies on Saturday night – which is slightly higher than the originally proposed revised prices.

Making medicine more affordable and stopping the ‘medical mafia’ is one of President Muizzu’s pledges. As is reforming Aasandha.