Important note: Information in this article was accurate in 2004. The state of the art may have changed since the publication date.
Sunday Times - Sunday, 19 September, 2004
Sashni Pather
The crackdown comes as Laudium pharmacist Shaheen Ismail-Vally faces charges in the Pretoria Regional Court of theft of some R30-million in antiretrovirals and other medicines destined for elsewhere in Africa. Ismail-Vally was granted bail of R1-million.
A spokesman for the Department of Health's Medicines Control Law Enforcement Unit, who would not comment on a specific case, said sophisticated syndicates were operating "in all sectors" of the industry.
"This type of crime is interlinked with all sectors of the industry and not just pharmaceutical goods.
"It is linked to medical aid fraud and fraud in the industry itself. You can't investigate one without checking out the other," he said.
He said the theft of antiretrovirals was an "increasing trend", as HIV medication was sold at a subsidised price. "Our prices are cheaper than in Europe or America. The syndicates are depleting the market of stock which is meant for the sick here."
"Round-tripping" - whereby medicines meant to be distributed by the state were exported and then reimported at a higher price - was also common.
"We have also inherited a bad system in terms of lax rules and regulations that simply cannot cope with this bigger market. Therefore, we work closely with law enforcement agencies and police and set up a specialised unit to manage the problem."
The Department of Health is trying to stem the crimes by introducing new measures, such as barcoding, to control the distribution of medicines.
Maureen Kirkman, head of scientific and regulatory affairs at the Pharmaceutical Manufacturers' Association, said that the biggest concern now was public safety.
"Any medication coming through illegal channels isn't necessarily safe. Anybody who buys from a dubious source is taking a real risk," she said.
Kirkman said antiretrovirals were high-cost medications that presented a temptation to criminals to either counterfeit the drugs or export them.
She said the industry itself had offered to absorb some of the costs of the government's control proposals.
"At the moment, the distribution channels also open the gate to poor controls and counterfeiting.
"The public will suffer, in that they will get sub-standard medication," said Kirkman.
Ismail-Vally, 41, owner of Plaza Pharmacy in Laudium, argued in an affidavit at his bail hearing this week that he was not a flight risk, as he had known a month before his arrest on September 3 that he was being investigated by the unit.
He said in his affidavit that he was the sole owner of Plaza Pharmacy and earned an income of about R30 000 a month.
The father of three, who is the sole breadwinner in his family, said his pharmacy was worth R1-million.
His house in Claudius Street, Laudium, had a market value of R2.5-million.
He also had a second house in Zebra Road, Eldo Glen, which had a market value of R1.5-million.
He said his employees would suffer irreparable prejudice if he was not released.
"My father is ill, having had two heart bypass operations.
"My arrest and incarceration has greatly exacerbated his condition."
Ismail-Vally's bail conditions stipulate that he must report to the Laudium police station daily and have no contact with a range of pharmaceutical companies.
The case was adjourned to November 10 for further investigation.
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