National Medical Stores (NMS) has challenged the finance ministry’s “special audit” on the institution in the High court, saying it violates the law and rules of natural justice.
The audit, whose report was finalized, alleges that NMS supplied cancer medicines at inflated prices to Uganda Cancer Institute (UCI), causing a financial loss of Shs 2 billion to taxpayers. It also accuses NMS of supplying the cancer institute with poor-quality medicines.
Now, in its suit, NMS says the permanent secretary in the finance ministry, Keith Muhakanizi, has no power to determine the standard and quality of drugs supplied. In court documents filed on August 11, 2017, NMS says it all started with Muhakanizi’s letter dated July 19, 2016, addressed to both NMS and UCI.