Former Health and Child Care Minister David Parirenyatwa appointed National Pharmaceuticals (NatPharm) managing director Newman Madzikwa was yesterday jailed for an effective 14 months after he was found guilty of criminal abuse of office in relation to the arbitrary increase of drug prices.
The price increases, with the effect of precipitating a crisis in the sector and endangering public health, were against the directive of the Ministry of Health and Child Care and the NatPharm board.
Harare regional magistrate Mr Hosea Mujaya initially sentenced Madzikwa to 20 months in jail before suspending six months for five years on condition of good behaviour.
The State proved that Madzikwa, contrary to laid down procedures, directed his financial manager Mr Roland Mlalazi, in a management meeting held on September 3, to effect an 11 percent increase on handling fees, a move that could have triggered an increase in the cost of basic drugs.
According to the State, there was a standing regulation for a four percent handling fee for all medical products delivered to the Health ministry.
When there was need for price adjustments, consultations were supposed to have been done with the NatPharm management committee and the board, which then recommends and seeks approval from the parent ministry.
In his ruling, Mr Mujaya indicated that Madzikwa was a first offender and everyone deserved a second chance and to be kept out of prison when necessary.
“The minutes that are available from NatPharm clearly show that the accused gave an instruction to increase the levy from four to 15 percent,” Mr Mujaya said.
Mr Mujaya ruled that the evidence that was placed by the State is very clear and in some aspect was actually confirmed by Madzikwa.
“The Ministry of Health was clear that the accused person failed to comply with the directive of the NatPharm board,” said Mr Mujaya.
He further stated that NatPharm board chairperson Dr George Washaya was also clear that the accused person was supposed to get approval from the ministry before implementing any increases.
In mitigation, Madzikwa’s lawyer, Mr Moses Nkomo, told the court that his client was a first offender, a family man and a pharmacist by profession.
He told the court that his client might lose his job due to the conviction.
Parirenyatwa is currently in the courts on charges that the Zanu PF official abused his government position to appoint Madzikwa as Managing Director in place of Flora Nancy Sifeku, who was substantive MD.
Madzikwa was once employed by NatPharm as branch manager Masvingo and was dismissed on September 3, 2009 for allegedly selling donated drugs to private institutions.
It is alleged that on 04 June 2018, Parirenyatwa acted contrary and inconsistent with his duties as a public officer by directing Natpharm Board Chairman, George Washaya to end Sifeku’s contract with the firm, thereby showing disfavour to her.
“His letter was in compliance with the objective contained in the ministry’s 100 day action plan which was approved at the ministry before it was presented to the cabinet prior to transmission of the said letter by the accused to Natpharm,” argued his lawyer.
The state alleges that the former minister further indicated that he required Sifeku’s services at his ministry which he headed since 2013 until he was dropped from cabinet last year.
Sifeku was given an indefinite period to serve in the ministry.
In the same directive, Parirenyatwa allegedly showed favour to Madzikwa by imposing him as the acting managing director NatPharm with effect from 01 June 2018.
The board implemented a directive by giving both Sifeku and Madzikwa six months contracts effectively from 1 June 2018 to 30 November 2018.
Parirenyatwa’s actions, it is further alleged, created a double dipping of NatPharm funds as the parastatal was now paying two salaries towards the managing directors’ position.
State alleges he prejudiced the firm of $15 003 and $15 003 potentially.