Pharma firms in plea bargain to escape accountability

They have received billions of rupees from consumers after ‘illegal’ price hike

ISLAMABAD: Pharmaceutical companies, which received an extra income of billions of rupees from patients by illegally increasing drug prices, have got off after inking a plea bargain deal with the National Accountability Bureau (NAB).

The pharma firms had pocketed extra revenues during the tenure of the previous Pakistan Peoples Party (PPP) government in collusion with the state Drug Pricing Committee.

Now NAB, after signing the plea bargain deal, suggested withdrawal of the price rise which the federal cabinet approved without raising any objection to the plea bargain.

Plea bargain is a window opened by the anti-corruption watchdog that allows the corrupt to escape accountability by returning the embezzled and illegally received money.



Sources revealed that the issue was taken up before the cabinet which met in the first week of November. It was informed that NAB had earlier initiated an inquiry to probe the price increase approved by the Drug Pricing Committee in March 2013.

Officials of the Ministry of National Health Services, Regulations and Coordination told the cabinet that NAB examined all the record and information and it revealed in December 2016 that during the course of investigation, managements of the pharmaceutical companies admitted their guilt and submitted applications for plea bargain.

Under the deal, the companies would return the unjustified gains in revenues following the ‘illegal’ and ‘unjustified’ increase in drug prices, it said.

Then NAB chairman accepted the plea bargain requests of the companies, which were also approved by the Accountability Court-I judge in Islamabad in December 2016.

NAB suggested that since the accused had admitted their guilt that the price hike was illegal and returned the wrongful gains, the prices of drugs should be reverted back to previous levels. In this regard, directives may be issued to all the offices concerned for strict implementation of the proposal.

The cabinet was informed that the Law and Justice Division had examined the draft notifications of maximum retail prices. On the advice of the prime minister, the matter was placed for consideration of the Drug Pricing Committee which, in its meeting held on April 10, 2017, recommended reverting back the drug prices to previous levels.



The price increase had been notified by sending letters to the pharmaceutical companies. In addition to that, the price hike for one drug - Envepe tablets - was also notified in the official gazette in October 2012.

Now, the Ministry of National Health Services has proposed that the price hike may be withdrawn and in this regard letters should be dispatched to the pharmaceutical companies concerned.

In respect of Envepe tablets, the notification may be revoked through a gazette notification vetted by the Law and Justice Division.

The cabinet approved the proposals and decided that the ministry would implement the decision in consultation with the Law and Justice Division after taking all legal aspects into consideration.

Published in The Express Tribune, November 22^nd, 2017.

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