STO halts supplying medicine to IGMH

State Trading Organization (STO) has stopped supplying medicine to the government’s main hospital, Indira Gandhi Memorial Hospital (IGMH), for defaulting on credit payments.

Person in-charge of IGMH Dr Mohamed Habeeb said the government’s main retail and wholesale company STO stopped supplying medicine to the hospital’s pharmacy after stating that the hospital’s credit limit had been reached.

“STO today stopped supplying medicine and medical material after saying that the credit limit is up. What can we do? Finance Ministry makes the payments,” Dr Habeeb said.

This is a continuing issue, he said, as the hospital has been forced to face the same situation in the past. As the government owns majority shares in STO, Habeeb said the company should not cease providing vital products.

“Every time they stop supplying medicine, I have to call STO’s MD Shahid to find a solution. I don’t believe this is how it should be. Especially in such issues, related to the lives of individual people,” Dr Habeeb said.

However, Dr Habeeb did not reveal the amount IGMH owes to STO. A word from neither Ministry of Finance and Treasury, nor STO, could be obtained at the time of press.

A public limited company with 92 percent of shares owned by the government, STO has recently been stating that the company is facing enormous difficulties due to the government defaulting on payments.

At the beginning of this month, STO declared they had just 10 days reserve of oil due to difficulties acquiring new shipments over delays in receiving MVR 620 million owed by the government.