PNG’s PAC inquires multi-million kina drug contracts
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PNG’s PAC inquires multi-million kina drug contracts
PORT MORESBY: Papua New Guinea (PNG)’s parliamentary Public Accounts Committee (PAC) has moved in on the latest procurement and supply of medical kits and antibiotics contracts awarded to Borneo Pacific Pharmaceutical Limited (BPPL).
BPPL won both one-year contracts, worth more than K100 million, by beating 17 other bidders.
Three bidders lost out to BPPL for the K65.3 million worth of medical kits and 14 bidders lost out for the K43.5 million worth of antibiotics.
This is not the first time BPPL had won bids for such lucrative Government contracts.
In 2013, the Australian Government withdrew its two-year A$38 million (K88 million) funding programme to supply drugs to health centres nationwide following BPPL’s successful tender for procurement and supply of drugs.
The National Doctor’s Association (NDA) has questioned the Government’s rationale of awarding such contracts to the private sector.
NDA secretary and chief of emergency medicine Dr Sam Yockopua asked: “Why can’t the Government set up its own departmentr to procure medical kits and medicine directly, either, from the World Health Organisation-certified suppliers, like the International Dispensary Association or equivalent, or directly from manufacturers in Asia, Australia, the US or Europe?
“Generic medicines procured this way will be cheaper and effective.”
PNG Cyber Monitor reproduces below details on the latest development on the issue as reported by The National:
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PNG’s PAC inquires multi-million kina drug contracts
PORT MORESBY: Papua New Guinea (PNG)’s parliamentary Public Accounts Committee (PAC) has moved in on the latest procurement and supply of medical kits and antibiotics contracts awarded to Borneo Pacific Pharmaceutical Limited (BPPL).
BPPL won both one-year contracts, worth more than K100 million, by beating 17 other bidders.
Three bidders lost out to BPPL for the K65.3 million worth of medical kits and 14 bidders lost out for the K43.5 million worth of antibiotics.
This is not the first time BPPL had won bids for such lucrative Government contracts.
In 2013, the Australian Government withdrew its two-year A$38 million (K88 million) funding programme to supply drugs to health centres nationwide following BPPL’s successful tender for procurement and supply of drugs.
The National Doctor’s Association (NDA) has questioned the Government’s rationale of awarding such contracts to the private sector.
NDA secretary and chief of emergency medicine Dr Sam Yockopua asked: “Why can’t the Government set up its own departmentr to procure medical kits and medicine directly, either, from the World Health Organisation-certified suppliers, like the International Dispensary Association or equivalent, or directly from manufacturers in Asia, Australia, the US or Europe?
“Generic medicines procured this way will be cheaper and effective.”
PNG Cyber Monitor reproduces below details on the latest development on the issue as reported by The National:
PAC to hold drug inquiry
Pundari: Inquiry in response to public outcry over drug purchase
By Rebecca KukuTHE Public Accounts Committee (PAC) announced yesterday that it will hold an inquiry into the recent K100 million worth of contract awards to Borneo Pacific Phamaceutical Limited (BPPL) to supply medical kits and antibiotics.
The PAC had also served notices yesterday to BPPL, the National Department of Health (NDOH) and the National Procurement Commission (NPC) for information and documents.
PAC chairman Sir John Pundari said the inquiry was called in response to the public outcry following the announcement of the awarding of two contracts to BPPL on Wednesday last week.
“We will be looking into how the procurement and supply was carried out, how the contracts were awarded, monies that may have been paid and other relevant information.
“Our job as the PAC is to ensure that public monies are used for the right purpose and to get value for money (in return).
“But, let me also clarify that we have no personal vendetta with anyone and we are not condemning anyone,” he said.
Pundari said the PAC would also be looking into why the Australian Government withdrew its two-year A$38 million (K88 million) funding programme to supply drugs to health centers nationwide following BPPL’s successful tender for procurement and supply of drugs in 2013.
“We will also be looking into finding out where the medicines are being sourced from and why there has been continuous reports and complaints of medicine shortages over the years, despite the spending on public health services,” he added.
PAC deputy chairman Gary Juffa said public health was the Government’s priority and that “the services must be effective and reach out to the people”.
“The inquiry notices have been served in response to the public outcry since the (2019) contracts were awarded. We cannot work on rumours and allegations, so we are conducting the inquiry to collate information for review.
“And the complaints are not just coming from the public but also from the hospital and aid post health officers who have all spoken out against this. Even doctors have threatened to walk off their jobs.
“Year after year, more money have been allocated to the health sector, yet the medicine shortage has been an ongoing issue,” he said.
Juffa said the PAC was mandated to protect the people and public funds that also belong to the people.
The PAC has given the three parties 14 days to submit the information it has requested for.
Health secretary Pascoe Kase said in a statement yesterday evening that the NDOH, as a state department, was subject to all laws and policies of Papua New Guinea.
“The department is happy to report to PAC on any matter,” he added.
God is good. Despite this, NDA will still go ahead and submit the petition to remove the Health Secretary.
Both BPPL and NPC could not be reached for response, comment or confirmation of receipt of the PAC notice.
National Doctor’s Association (NDA) secretary and chief of emergency medicine Dr Sam Yockopua welcomed and applauded the inquiry saying: “God is surely good.”
“We (NDA) are ready to assist the PAC with any information it may need from doctors. We are more than 200% ready to help the PAC with its inquiry.
“The action taken by Pundari and his PAC team is akin to coming to the rescue of the citizens of PNG who have been the victims lacking health services.
“The sufferings of the sick for lack of health services must stop. What the NDA had started will now be pursued by the rightful body, a Constitutional body responsible to trace how the people’s money have been used or abused. Those implicated, justice can be served,” he added.
On Wednesday last week, Kase announced that BPPL had been awarded two contracts to supply medical kits (K65.3 million) and antitbiotics (KK43.5 million).
The following day, the NDA questioned the Government’s rationale of awarding contracts to the private sector for supply of medical kits and medicine.
Yockpua had asked: Why can’t the Government set up its own department to procure medical kits and medicine directly either, from the World Health Organisation-certified suppliers, like the International Dispensary Aassociation or equivalent, or directly from manufacturers in Asia, Australia, the US or Europe?
“Generic medicines procured this way will be cheaper and more effective.”
On Friday, Prime Minister James Marape told The National that the Government was reviewing and looking into alternative ways to improve its procurement and supply of medicines (pharmaceutical drugs) for the people.
The PAC had also served notices yesterday to BPPL, the National Department of Health (NDOH) and the National Procurement Commission (NPC) for information and documents.
PAC chairman Sir John Pundari said the inquiry was called in response to the public outcry following the announcement of the awarding of two contracts to BPPL on Wednesday last week.
“We will be looking into how the procurement and supply was carried out, how the contracts were awarded, monies that may have been paid and other relevant information.
“Our job as the PAC is to ensure that public monies are used for the right purpose and to get value for money (in return).
“But, let me also clarify that we have no personal vendetta with anyone and we are not condemning anyone,” he said.
Pundari said the PAC would also be looking into why the Australian Government withdrew its two-year A$38 million (K88 million) funding programme to supply drugs to health centers nationwide following BPPL’s successful tender for procurement and supply of drugs in 2013.
“We will also be looking into finding out where the medicines are being sourced from and why there has been continuous reports and complaints of medicine shortages over the years, despite the spending on public health services,” he added.
PAC deputy chairman Gary Juffa said public health was the Government’s priority and that “the services must be effective and reach out to the people”.
“The inquiry notices have been served in response to the public outcry since the (2019) contracts were awarded. We cannot work on rumours and allegations, so we are conducting the inquiry to collate information for review.
“And the complaints are not just coming from the public but also from the hospital and aid post health officers who have all spoken out against this. Even doctors have threatened to walk off their jobs.
“Year after year, more money have been allocated to the health sector, yet the medicine shortage has been an ongoing issue,” he said.
Juffa said the PAC was mandated to protect the people and public funds that also belong to the people.
The PAC has given the three parties 14 days to submit the information it has requested for.
Health secretary Pascoe Kase said in a statement yesterday evening that the NDOH, as a state department, was subject to all laws and policies of Papua New Guinea.
“The department is happy to report to PAC on any matter,” he added.
God is good. Despite this, NDA will still go ahead and submit the petition to remove the Health Secretary.
Both BPPL and NPC could not be reached for response, comment or confirmation of receipt of the PAC notice.
National Doctor’s Association (NDA) secretary and chief of emergency medicine Dr Sam Yockopua welcomed and applauded the inquiry saying: “God is surely good.”
“We (NDA) are ready to assist the PAC with any information it may need from doctors. We are more than 200% ready to help the PAC with its inquiry.
“The action taken by Pundari and his PAC team is akin to coming to the rescue of the citizens of PNG who have been the victims lacking health services.
“The sufferings of the sick for lack of health services must stop. What the NDA had started will now be pursued by the rightful body, a Constitutional body responsible to trace how the people’s money have been used or abused. Those implicated, justice can be served,” he added.
On Wednesday last week, Kase announced that BPPL had been awarded two contracts to supply medical kits (K65.3 million) and antitbiotics (KK43.5 million).
The following day, the NDA questioned the Government’s rationale of awarding contracts to the private sector for supply of medical kits and medicine.
Yockpua had asked: Why can’t the Government set up its own department to procure medical kits and medicine directly either, from the World Health Organisation-certified suppliers, like the International Dispensary Aassociation or equivalent, or directly from manufacturers in Asia, Australia, the US or Europe?
“Generic medicines procured this way will be cheaper and more effective.”
On Friday, Prime Minister James Marape told The National that the Government was reviewing and looking into alternative ways to improve its procurement and supply of medicines (pharmaceutical drugs) for the people.
Nurses association not supporting doctors
THE Papua New Guinea Nurses Association (PNGNA) does not support the National Doctor’s Association (NDA)’s call for the health secretary Pascoe Kase to step down.
“This is an unprofessional call and inappropriate,” PNGNA general secretary Gibson Suine said in an email to The National.
He said medical supply shortages were chronic problems that the health authorities and stakeholders had failed to analyse (efficiently) resulting in shortages.
Suine said: “They have failed to identify strategies to ensure that these issues were addressed more effectively and efficiently. It is not an issue where the health secretary has to be hand-picked, unless proven otherwise.
“The drugs and medical supply management process within the health department is a lengthy process, from tender, to procurement, shipment to area medical stores (logistics), and to health facilities.
“Within this process, there is segregation of duties with different line management and people responsible in the management of these drugs and medical supplies.
“If there is a shortage, the supply chain is weak, meaning someone is not doing his or her job with pride and honesty, or there is a loop hole within the system that must be identified and corrected.”
He said health secretary must not be blamed, unless the root cause of medicine shortages and medical supplies within the health system was justified.
“For instance, at the moment all health facilities in the country do not have their maximum and minimum consumption or usage rate for the monthly supplies.
“They are purely based on estimates, therefore, within the health system we have excess supplies in some health facilities, and shortages in other facilities.
“The National Department of Health (NDOH)’s medical supply branch lacked effective networking and collaboration in the management of medical supplies and drugs, thereby costing the Government millions of kina.
“This is a reflection of poor management to ensure adequate and timely availability of medical supplies and drugs in public health facilities.
“Therefore, NDA general secretary Dr Sam Yockopua’s statement against Kase is too shallow and weak,” Suine said.
“We do not support the NDA until and when sufficient facts and evidence are produced to justify his statement.
“We, therefore, call on the Health Minister to set up a team to investigate this chronic problem of drugs and medical supplies in PNG and to identify strategies to improve medical supply efficiency.”
“This is an unprofessional call and inappropriate,” PNGNA general secretary Gibson Suine said in an email to The National.
He said medical supply shortages were chronic problems that the health authorities and stakeholders had failed to analyse (efficiently) resulting in shortages.
Suine said: “They have failed to identify strategies to ensure that these issues were addressed more effectively and efficiently. It is not an issue where the health secretary has to be hand-picked, unless proven otherwise.
“The drugs and medical supply management process within the health department is a lengthy process, from tender, to procurement, shipment to area medical stores (logistics), and to health facilities.
“Within this process, there is segregation of duties with different line management and people responsible in the management of these drugs and medical supplies.
“If there is a shortage, the supply chain is weak, meaning someone is not doing his or her job with pride and honesty, or there is a loop hole within the system that must be identified and corrected.”
He said health secretary must not be blamed, unless the root cause of medicine shortages and medical supplies within the health system was justified.
“For instance, at the moment all health facilities in the country do not have their maximum and minimum consumption or usage rate for the monthly supplies.
“They are purely based on estimates, therefore, within the health system we have excess supplies in some health facilities, and shortages in other facilities.
“The National Department of Health (NDOH)’s medical supply branch lacked effective networking and collaboration in the management of medical supplies and drugs, thereby costing the Government millions of kina.
“This is a reflection of poor management to ensure adequate and timely availability of medical supplies and drugs in public health facilities.
“Therefore, NDA general secretary Dr Sam Yockopua’s statement against Kase is too shallow and weak,” Suine said.
“We do not support the NDA until and when sufficient facts and evidence are produced to justify his statement.
“We, therefore, call on the Health Minister to set up a team to investigate this chronic problem of drugs and medical supplies in PNG and to identify strategies to improve medical supply efficiency.”
Kapavore calls for efficiency
HEALTH and HIV/AIDS Minister Elias Kapavore, pictured, has called on health facilities to manage their stock levels efficiently and place medicine orders on time to respective area medical stores to obtain medicines and avoid shortages.
Kapavore said the Health Department was working hard to ensure that medicine woes were minimised by closely monitoring stock levels.
He said placing orders efficiently and following up with suppliers for timely delivery prevented shortages.
“The department is aggressively following up with suppliers to deliver medicines orders on time” Kapavore said.
“Reports of stealing of medicines around the country is also experienced. I have (alerted) health managers about stealing leakages.
“People found stealing medicines must be terminated on the spot.”
Kapavore said all 15 provincial transit medical and five area medical stores had 70 per cent of the commonly used medicines available.
“This information is based on the recently established mSupply system reports, which tracks all our stock levels and which medicines are on order at any one time,” he said.
“This figure means that there are some gaps in the medicines, which orders have been placed and are yet to come into the country.
“There are many reasons why medicines might not be available in health facilities.
Kapavore said that the Health Department was continuing to procure and monitor lifesaving medicines required by public health facilities.
Kapavore said the Health Department was working hard to ensure that medicine woes were minimised by closely monitoring stock levels.
He said placing orders efficiently and following up with suppliers for timely delivery prevented shortages.
“The department is aggressively following up with suppliers to deliver medicines orders on time” Kapavore said.
“Reports of stealing of medicines around the country is also experienced. I have (alerted) health managers about stealing leakages.
“People found stealing medicines must be terminated on the spot.”
Kapavore said all 15 provincial transit medical and five area medical stores had 70 per cent of the commonly used medicines available.
“This information is based on the recently established mSupply system reports, which tracks all our stock levels and which medicines are on order at any one time,” he said.
“This figure means that there are some gaps in the medicines, which orders have been placed and are yet to come into the country.
“There are many reasons why medicines might not be available in health facilities.
Kapavore said that the Health Department was continuing to procure and monitor lifesaving medicines required by public health facilities.
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