National Medical Stores Act

Jurisdiction: Uganda
Instrument: Act or statute
Citation: Chapter 207
Version: Undated source snapshot
Language: en

Source attribution: Source: Uganda Legal Information Institute

Statute overview

About this statute

This section provides definitions of terms used in the Act, including "board", "Central Medical Stores", "chairperson", "corporation", "financial year", "goods", "medical supplies", "medicines", "Minister", "operational date" and "transition period". Establishes the National Medical Stores as a corporate body with perpetual succession, a common seal, and permits it to sue or be sued in its corporate name. The corporation's seal must be signed by the general manager and the secretary; if the general manager is absent the deputy general manager may sign, and if the secretary is absent the person performing the secretary's functions may sign. The object of the corporation is to ensure for the national and public benefit the procurement, storage, quality assurance, planning and complementary tasks related to medicines and certain other medical supplies. The corporation must advise the National Drug Authority; the National Drug Authority must advise specified Ministries either on request or on the board's initiative about key issues including drug needs and distribution.

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Provisions of National Medical Stores Act

Showing 19 of 19

Part I

Interpretation

1
Interpretation - Interpretation

This section provides definitions of terms used in the Act, including "board", "Central Medical Stores", "chairperson", "corporation", "financial year", "goods", "medical supplies", "medicines", "Minister", "operational date" and "transition period".

Section Interpretation Section In this Act, unless the context otherwise requires— " board " means the board of directors established under section 8 ; " Central Medical Stores " means the Central Medical Stores existing as a department of the Government immediately before the commencement of this Act, which shall cease to exist after all its functions, assets and liabilities have been transferred to the corporation or otherwise resolved; " chairperson " means the chairperson of the board of directors; " corporation " means the National Medical Stores; " financial year " means in respect of any accounting period a period of twelve months ending on the 30th June; " goods " means medicines and medical supplies ; " medical supplies " includes products or materials used in the practice of health care, medicine, pharmacy and hospital operation insofar as these are specific to these fields, disposable items employed in drug administration and bandaging and nursing materials; it does not extend to mechanical, electrical or electronic equipment; " medicines " includes medicinal products as are intended for the prevention, alleviation or cure of any human illness or for the modification of human physiological function and sera or vaccines; " Minister " means the Minister responsible for health; " operational date " means the date at which the corporation assumes its primary functions; " transition period " means the period between the commencement date and operational date , during which the new organisation shall become operational.

Part II

Establishment, object, functions and powers of the corporation

2
Establishment, object, functions and powers of the corporation - Establishment of the corporation

Establishes the National Medical Stores as a corporate body with perpetual succession, a common seal, and permits it to sue or be sued in its corporate name.

Section Establishment of the corporation Section The corporation — There is established a corporation by the name of the National Medical Stores. shall be a body corporate with perpetual succession; shall have a common seal; and may sue or be sued in its corporate name.
3
Establishment, object, functions and powers of the corporation - The seal of the corporation

The corporation's seal must be signed by the general manager and the secretary; if the general manager is absent the deputy general manager may sign, and if the secretary is absent the person performing the secretary's functions may sign.

Section The seal of the corporation Section The seal of the corporation shall be authenticated by the signatures of the general manager and the secretary to the board . In the absence of the general manager, the deputy general manager may sign in his or her place, and the person performing the functions of the secretary may sign in the absence of the secretary. A document issued by the corporation and sealed with the seal of the corporation and authenticated in the manner provided by this section shall be received and taken to be a true instrument without further proof unless the contrary is shown.
4
Establishment, object, functions and powers of the corporation - Object of the corporation

The object of the corporation is to ensure for the national and public benefit the procurement, storage, quality assurance, planning and complementary tasks related to medicines and certain other medical supplies.

Section Object of the corporation Section The object of the corporation is to ensure for the national and public benefit— the efficient and economical procurement of medicines and of certain other medical supplies of good quality primarily to the public health services; the secure, safe and efficient storage, administration, distribution and supply of the goods , having regard to national needs and to the special nature of the goods in question in accordance with the national drug policy and the national drug authority; the establishment and maintenance of systems to ensure the quality of goods supplied; the estimation of current and future needs as a basis for procurement planning and for budgeting by the corporation itself and the Ministries concerned; the proper performance of additional tasks as may be accepted by the board as complementary or necessary to the performance of its primary functions, and are entrusted to the corporation by regulation.
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Establishment, object, functions and powers of the corporation - Advisory role of the corporation

The corporation must advise the National Drug Authority; the National Drug Authority must advise specified Ministries either on request or on the board's initiative about key issues including drug needs and distribution.

Section Advisory role of the corporation Section The corporation shall advise the National Drug Authority, and the National Drug Authority shall advise the Ministry responsible for health, the Ministry responsible for finance, planning and economic development and the Ministry responsible for local government either on request or at the board 's own initiative on essential issues relating to the state of the corporation and its future development, as well as to related matters, including the estimation of drug needs and the distribution and use of medicines in the public health service.
6
Establishment, object, functions and powers of the corporation - Borrowing powers, etc.

The corporation may, in connection with its objects and functions under the Act, borrow money; buy, hold, manage and dispose of property; enter contracts and transactions; charge for services; and do other acts a body corporate may do.

Section Borrowing powers, etc. Section The corporation may, for and in connection with its objects and functions under this Act, borrow money, purchase, hold, manage and dispose of any property whether movable or immovable, and enter into any contract and other transaction as may be expedient and may charge for services provided by it and may do any other act or thing as in law may be done by a body corporate.
7
Establishment, object, functions and powers of the corporation - Supply to private health care

The corporation may supply medicines and medical supplies for use in private health care for payment, provided supplies or funds are not diverted from public care and the corporation's public service is not impaired.

Section Supply to private health care Section The corporation may supply medicines and medical supplies against payment for use in private health care, on condition that there will be no diversion of supplies or of donor or Government funds from public to private health care and that the corporation 's service to the public sector is not impaired in any other way.

Part III

The board of directors

10
The board of directors - Functions of the board

The board must carry out a list of functions for the corporation, including policy formulation and review, setting annual targets, appraising management, making recommendations to the Minister on the general manager, staffing decisions, establishing procedures and approving an operations manual, and performing other functions as directed by the Minister.

Section Functions of the board Section The functions of the board shall be— to formulate and review the policy of the corporation having regard to its purposes as set out in this Act; to set targets for the annual performance of the corporation both in terms of public service and financial results; to appraise and evaluate the performance of the management of the corporation ; to make recommendations to the Minister regarding the appointment, performance and dismissal of the general manager of the corporation and the terms of his or her appointment; to appoint, appraise and discipline senior members of the staff of the corporation ; subject to the limitations of this Act, to determine the organisational structure and staffing of the corporation ; to establish its own procedures and to approve an operations manual for the internal operation of the corporation on the basis of a draft submitted by the management committee and to approve proposals for modifications to the operations manual; to perform any other functions relating to the above functions as the Minister may direct.
8
The board of directors - Board of directors

The Minister appoints directors (terms up to three years), the board must have 10–16 members with a chairperson, the chairperson must notify the Minister of vacancies, and the Minister must fill vacancies within three months; the Minister may remove members for negligence or misbehaviour; directors are eligible for reappointment.

Section Board of directors Section In making appointments, the Minister shall respect proposals made by the bodies most closely concerned and, in particular, shall appoint— one director each proposed severally by— one expert in each of the following fields— If a member of the board — The governing body of the corporation shall be a board of directors consisting of not less than ten and not more than sixteen persons, one of whom shall be the chairperson . All directors shall be appointed by the Minister for a period not exceeding three years on terms and conditions that may be specified in the instruments of appointment and shall be eligible for reappointment. two directors as proposed by the National Drug Authority; the Ministry responsible for finance, planning and economic development; the Ministry responsible for local government; the medical missions; and company law or corporate management; the profession of pharmacy; the profession of medicine; and primary health care. The Minister shall appoint the chairperson . dies; resigns; has his or her appointment terminated under subsection (7); or ceases to hold office for any other reason, The chairperson shall notify the Minister as soon as a vacancy occurs in the membership of the board , and the Minister shall fill the vacancy within three months of receiving the notice. The Minister may remove a member of the board for negligence or misbehaviour or inability to perform the functions of his or her office, whether arising from infirmity of body or mind or from any other cause.
9
The board of directors - Qualifications of a director

A person may be appointed as a director if they are a citizen of Uganda or lawfully admitted for permanent residence and actually residing in Uganda. The Minister must appoint to the board only persons without substantial interests that conflict with those of the board or the corporation.

Section Qualifications of a director Section A person may be appointed as director— if he or she is a citizen of Uganda; or if he or she is lawfully admitted into Uganda for permanent residence and is actually residing in Uganda. The Minister shall appoint to the board only persons having no substantial interests which conflict with those of the board or the corporation .

Part IV

General manager, officers and staff

11
General manager, officers and staff - General manager

The Minister must appoint a general manager; the general manager is the chief executive responsible for day-to-day operations, management of funds, property and staff, may attend and vote at board meetings (with exclusions), and is assisted by a specified management committee.

Section General manager Section The Minister shall appoint a general manager of the corporation on the recommendation of the board and on terms and conditions that the Minister may, in consultation with the board , determine. The general manager shall be the chief executive of the corporation and shall be responsible for the day-to-day operations of the corporation . Subject to this Act and the general supervision and control of the board , the general manager shall be responsible for the management of the funds, property and business of the corporation and for the administration, organisation and control of the staff of the corporation . The general manager shall be entitled to attend and participate in all the meetings of the board and to have a voting right except in matters relating to his or her own appointment and the assessment of his or her performance. The general manager shall be assisted by a management committee, of which he or she shall be the chairperson , and which shall comprise the deputy general manager, the chief pharmacist, the chief procurement officer and the chief stores officer; and in matters relating to engineering, the chief engineer shall serve as a member of the committee.
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General manager, officers and staff - Secretary to the board

The secretary shall be appointed by the Minister on the advice of the board and shall have custody of the corporation's seal and be responsible for taking minutes and keeping records of all transactions.

Section Secretary to the board Section In addition to any other functions that may be conferred upon him or her by the Minister on the advice of the board , the secretary shall— There shall be a secretary to the board who shall be appointed by the Minister on the advice of the board on terms and conditions that the Minister may determine. have custody of the seal of the corporation ; be responsible for the taking of the minutes of the meetings of the board and for the keeping of the records of all transactions of the corporation .
13
General manager, officers and staff - Officers and employees

The board may determine the heads of departments and other officers and employees of the corporation.

Section Officers and employees Section There shall be heads of departments and other officers and employees of the corporation as the board may determine.
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General manager, officers and staff - Protection of officers

Employees of the corporation are not personally liable in civil or criminal proceedings for acts or omissions done in good faith while performing their functions under this Act.

Section Protection of officers Section An employee of the corporation shall not, in his or her personal capacity, be liable in civil or criminal proceedings in respect of any act or omission done in good faith in the performance of his or her functions under this Act.

Part V

Financial provisions

15
Financial provisions - Income of the corporation

The corporation's income consists of payments for medicines and medical supplies, parliamentary and donor funding, and other gainful activities; earnings from cost recovery must be used to create and maintain an operating reserve and improve the corporation's services and facilities.

Section Income of the corporation Section The income of the corporation shall consist of funds accruing from— the supply against payment of medicines and medical supplies to the Ugandan public health services and associated institutions and to other institutions and bodies that may be designated by the Ministry as serving public need; the supply against payment of medicines and medical supplies for use in private health care; funding that may be made available to it by Parliament; funding provided by donors or other financiers; miscellaneous gainful activities that may be undertaken by the corporation to further its income. Earnings through cost recovery shall be used exclusively to create and maintain an operating reserve and to improve the corporation 's services and facilities.
16
Financial provisions - Estimates

The general manager must prepare and submit annual and supplementary estimates to the board; expenditure must be within board-approved estimates; the general manager must present foreign currency procurement estimates to be submitted via the National Drug Authority to the Minister of Finance.

Section Estimates Section The general manager shall, not later than three months before the end of each financial year , prepare and submit to the board for its approval, estimates of the corporation 's income and expenditure for the next ensuing year and may, at any time before the end of each financial year , prepare and submit to the board for approval any estimates supplementary to the estimates of a current financial year . No expenditure shall be made out of the funds of the corporation unless that expenditure is part of the expenditure approved by the board under the estimates for the financial year in which the expenditure is to be incurred or in supplementary estimates for that year. The general manager shall, not later than three months before the end of each financial year , present advance annual estimates of the sums in foreign currency likely to be required for procurement purposes; and those estimates shall, after approval by the board , be submitted through the National Drug Authority to the Minister responsible for finance.
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Financial provisions - Accounts, records and audit

Requires the corporation to keep proper accounts and records; the general manager to submit an annual report within three months after each financial year; the annual accounts to be audited by the Auditor General who must report within two months; and the Minister to lay the report and audit opinion before Parliament within two months or at its next meeting.

Section Accounts, records and audit Section The general manager shall, within three months after the end of each financial year , submit— to the Minister and the board an annual report in respect of that year containing— to the Auditor General— The corporation shall keep accounts and records of its transactions and affairs and shall ensure that all monies received are properly brought to account, all payments out of its monies are correctly made and properly authorised and that adequate control is maintained over its property and over the incurring of liabilities by the corporation . The annual accounts of the corporation shall be audited by the Auditor General. financial statements; performance indicators and any other related information indicative of the measure in which the corporation has achieved its primary purposes in terms both of public service and successful corporate operation; a report on the operations of the corporation ; other information as the board , before or after the completion of the annual report, may direct; the accounts of the corporation for the financial year ; and the annual report referred to in paragraph (a). The Auditor General shall audit the accounts within two months after receipt and submit his or her opinion to the Minister and to the board . The Minister shall cause copies of each annual report, together with a copy of the opinion of the Auditor General, to be laid before Parliament within two months or at its next meeting after he or she has received them.

Part VI

Transitional provisions

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Transitional provisions - Transitional provisions

The board must progressively assume responsibilities so the corporation can enter full operation within twelve months from commencement; the board must take preparatory steps during that period, the Minister must appoint the board and provide finances within three months of commencement, and the Central Medical Stores will cease after transfer or disposal of its functions, assets and liabilities.

Section Transitional provisions Section The board shall progressively assume its obligation so as to ensure that the corporation can enter full operation within twelve months from the commencement of the Act, and the board shall during this period take steps to— Not more than three months after the commencement of this Act, the Minister shall appoint the board of directors and make financial provision for its preparatory work. recommend the appointment of a general manager; appoint senior staff; establish operational procedures; value the assets and obligations of the Central Medical Stores and of stocks held by them and evaluate the staff employed by that body; determine which of these assets, obligations, stock and staff can and should be transferred to the corporation , as being necessary for the performance of its functions, and make recommendations to the Minister accordingly; recommend to the Ministers responsible for health and finance, planning and economic development a sum required as starting capital for the corporation ; recommend to the Ministers responsible for health and finance, planning and economic development a sum required as operational budget for the corporation . The Central Medical Stores shall cease to operate and to exist after all its functions, assets and liabilities have been transferred to the corporation or otherwise disposed of.
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Transitional provisions - Residual assets and obligations

The Minister has the discretion to dispose of residual assets and to settle residual obligations of the Central Medical Stores not transferred to the corporation.

Section Residual assets and obligations Section Disposal of the residual assets and settling of the residual obligations of the Central Medical Stores which are not transferred to the corporation shall be at the discretion of the Minister .

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