STO raises credit limit for IGMH, resumes supplying medicine

The State Trading Organisation (STO) has raised the credit limit for the government-operated Indira Gandhi Memorial Hospital (IGMH) and resumed providing medical supplies and medicine.

STO Managing Director Shahid Ali told CNM today that the credit limit has been raised to MVR5 million (US$324,254) following assurances by the Finance Ministry.

While local media had reported that STO had stopped providing medicine to IGMH, Shahid explained that the government-owned company was unable to provide further supplies after the credit limit was reached this morning. The hospital owes STO for purchases dating back to 2011, he noted.

However, IGMH Responsible Officer Dr Mohamed Habeeb claimed that the STO stopped providing supplies “every other week or two weeks” citing the credit limit.

“STO has stopped providing medicine and medical supplies today saying we have run out of credit. But what can we do? It is the Finance Ministry that pays,” he was quoted as saying.

Shahid Ali had told parliament’s Finance Committee recently that the company was facing financial constraints due to unpaid debts in excess of MVR600 million from other government-owned companies.