Malawi Pharmaceutical Scandal: How a Deadly Drug Supplier Evaded Justice for a Decade
By Nexio News
A shocking investigation has revealed that one of Malawi’s largest pharmaceutical suppliers has been distributing expired and falsified medicines to public hospitals for over a decade—despite being linked to infant deaths and a major insulin scam.
The company, currently operating as GPSL Wholesale Ltd, was previously known as Galaxy Pharmaceuticals and Surgical Logistics, which was shut down in 2013 after supplying faulty antibiotics tied to baby deaths at Mzimba District Hospital. Yet, after rebranding in 2019, the firm resumed its dangerous practices, including relabeling stolen, expired insulin and selling it to hospitals during a national shortage.
Despite multiple violations, GPSL continues to supply state hospitals, raising serious questions about regulatory failures, political interference, and the safety of Malawi’s healthcare system.
The Insulin Scam: Expired Drugs, Relabeled, Resold
In early 2022, Malawi faced a critical insulin shortage. Instead of sourcing legitimate supplies, GPSL exploited the crisis.
Documents obtained by the Platform for Investigative Journalism (PIJ) reveal that expired insulin—meant for destruction at Queen Elizabeth Central Hospital (QECH) in Blantyre—was stolen by a pharmacy technician, Michael Lemeka. He smuggled vials out in his laptop bag and sold them to an illicit drug broker, Habib Goba, who had previously been implicated in stolen medicine schemes.
GPSL purchased the stolen insulin at K5,000 per vial—well below the market rate—and falsified records to make it appear legitimate. The company then replaced the original labels, changing the expiry date from August 2021 to October 2022, and redistributed the ineffective drugs to hospitals nationwide, including Mzuzu, Kamuzu, and Zomba Central Hospitals.
The scheme unraveled when doctors noticed the insulin wasn’t working. At Kamuzu Central Hospital, an intern spotted peeling labels, exposing the original expiry dates.
“KCH discovered that the insulin had expired at QECH and a technician stole and sold it to us,” hospital director Amos Msekandiana told PIJ.
Regulatory Failure: A Warning Instead of Justice
An investigation by Malawi’s Pharmacy and Medicines Regulatory Authority (PMRA) led to GPSL’s offices being temporarily shut down, but no prosecutions followed.
The PMRA’s disciplinary committee recommended revoking GPSL’s license, but the board ignored the advice, issuing only a warning to the company’s managing director.
“It’s a bewildering ruling. What stops a company based in Blantyre from supplying drugs anywhere else in the country?” a PMRA official told PIJ.
Allegations of political interference and attempted bribery during the disciplinary process were never investigated. Meanwhile, GPSL continues to operate, with state ambulances still seen collecting supplies from its Blantyre office.
A Decade of Deadly Violations
This wasn’t GPSL’s first offense. In 2013, under its former name, the company supplied faulty antibiotics to Mzimba District Hospital, leading to infant deaths. Before regulators could complete their investigation, the evidence—the drugs themselves—disappeared.
Despite the revocation of its license, the company reopened under a new name in 2019, with ownership allegedly transferred to the son of the original proprietor.
Online, employees still list Galaxy Pharmaceuticals as their employer, and Verinder Bali, who identifies himself as Head of Global Marketing at Galaxy Pharmaceuticals, confirmed to PIJ that “Galaxy Pharmaceutical Company and GPSL are the same company.”
A Broken System Endangering Lives
A 2022 study by Kamuzu University of Health Sciences found that over 14% of antibiotics, antimalarials, and antidiabetic drugs in Malawi were substandard or falsified.
George Jobe, executive director of the Malawi Health Equity Network, warned: “Medicines are meant to save lives. Any act that compromises their safety and quality is a grave violation of patient rights and undermines public trust.”
Yet, critical questions remain unanswered:
- How did a company linked to deaths return under a new name?
- Why were key case files stolen during investigations?
- Why has GPSL faced no real consequences?
With Malawi’s Ministry of Health awaiting court rulings before taking action, and key suspects now deceased, justice remains elusive.
For now, the same company continues supplying drugs—putting countless lives at risk.
— Reported by Nexio News
