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PNG’s NDoH bribed!
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News that matters in Papua New Guinea
PNG’s NDoH bribed!
PORT MORESBY: Health issues, supply of pharmaceutical drugs and medical kits, and corruption had been protracted issues dominating news headlines in Papua New Guinea (PNG) for decades.
Last Thursday (Nov 21, 2019), at the Public Accounts Committee (PAC)’s fifth session of its inquiry into the procurement and supply of medicine and medical kits worth more than K100 million to Borneo Pacific Pharmaceuticals Ltd (BPPL) this year, sparks started firing wantonly.
Health secretary Pascoe Kase told the PAC that he was surprised the contract to procure and supply medicines was awared to BPPL in 2014.
Kase was later cornered by PAC chairman Sir John Pundari’s line of questioning that forced him to ask for time to check his records, and to submit documents on Monday (Nov 25, 2019).
LD Logistics Company (LDLC) which secured a K25 million contract to deliver medicines and pharmaceutical drugs nationwide in 2014 was also asked to submit relevant documents.
On Monday (Nov 21, 2019), both Kase and LDLC submitted the documents that the PAC wanted, and the PAC asked for even more documents from Kase following a bombshell of a testimony by Global Customs & Forwarding Ltd (GCF) managing-director Harupa Peke.
Peke jolted the inquiry when he said he paid a K100,000 bribe to a member of the National Department of Health (NDoH) Technical Evaluation Committee member, Paul Dopsie.
PNG Cyber Monitor reproduces below reports of the inquiry published by The National for our followers’ reading convenience:
By LULU MARK and SAMUEL BARIASIA BOMBSHELL jolted the Public Accounts Committee (PAC) inquiry yesterday when the managing-director of a logistics company claimed that he paid a K100,000 bribe to a member of the National Department of Health (NDoH) Technical Evaluation Committee. Global Customs & Forwarding Ltd (GCF)’s Harupa Peke told the PAC that he paid the bribe to Paul Dopsie several times for invoices in order to be paid on time for delivery supplies. Peke filed a letter of complaint to NDOH secretary in May 2017 stating bribery allegations against Dopsie after several instances of delays in payment. He also filed a letter of complaint to the NDoH secretary in May 2017, stating the bribery allegations against Dopsie after several delays in payments. He also filed a letter of complaint to the NDoH secretary in May 2017, stating the bribery allegations against Dopsie after several delays in payments. “I never received any response from the secretary but was later called in by a National Executive Council (NEC) audit team about the letter. “I had to withdraw the letter again because I felt that my life and business were at risk,” Peke said. GCF, formerly known as Loha Customs and Forwarding Ltd, was previously engaged by AusAID for K15 million to distribute 100 per cent medical kits in Mamose from 2012 to 2014. The company then secured its first contract of K8 million with NDoH in 2014 to deliver medical supplies, again in Mamose from 2014 to 2017. Peke also revealed that there were witnesses and a few government officials involved in the bribe who were summoned by PAC to appear in the inquiry next Monday.
Reports by LULU MARK and SAMUEL BARIASITHE PAC wants to know why the National Executive Council (NEC) awarded a K71 million contract to Borneo Pacific Pharmaceutical (BPPL) and not K48 million to City Pharmacy Ltd (CPL). PAC chairman Sir John Pundari said inquiries revealed that even though CPL was the Health Department technical evaluation committee’s first preference, BPPL was awarded the contract instead. Sir John said the people of Papua New Guinea needed to know why K23 million that could have been saved for other development needs were spent in that manner. He told the NEC secretary Grace Soo’n to produce the NEC submissions, discussions and members present at the decision-making to award contracts to appear before the inquiry next Monday. Soo’n explained that the NEC secretary’s role was to check all submissions, to ensure that they complied with legislative requirements and the NEC process. She said the NEC had a handbook that was approved in 2017 on the requirements and processes and would be brought before the PAC on Monday. Yesterday was the sixth session of the PAC’s inquiry into the procurement and supply of medicine and medical kits worth more than K100 million to BPPL this year.
PAC wants more documents from Kase, logistics company
HEALTH Department secretary Pascoe Kase has tendered documents related to the awarding of a contract to procure and supply medicines to BPPL in 2014. The documents were requested by the PAC following last Thursday’s fifth inquiry session. LD Logistics Company (LDLC) also presented documents requested by PAC last Thursday. Kase presented documents such as National Medicines Policy; Drug Registration Guidelines; Good Storage Practices; Distribution Standards and Manuals, and Pharmacy Practice Guidelines and Inspections of Pharmaceutical Institutions. Kase said City Pharmacy Ltd (CPL)’s statement about not having inspections done at their shops was wrong. “We do have information about regular inspections that are carried by our pharmacists. We also attached reports of inquiries into concerns being raised by pharmaceutical companies,” he said. Kase also presented product quality testing results as requested by PAC last Thursday. “We also have information on medicine quality laboratory in Gordon, we have information on some of the samples collected,” he said. PAC deputy chairman Gary Juffa said the inquiry needed to look into how the health system could be improved. He requested that LDLC provided proof of delivery dockets and the type of “proof of delivery” that was used to deliver medical supplies. Juffa also requested that BPPL provided the list of companies that it purchased its drugs from. “We would like to know from which companies and what factories do you purchase your drugs for the duration of your contract,” he said. He asked Kase to present copies of the letters of complaint and withdrawal from Global Customs and Forwarding Ltd to a NDoH staff in next week’s inquiry. “We would also want to know if you issue certificates of completion after contracts are completed. Those certificates should be provided as well,” he said. “We also would like you to provide a report with regards to any complaint laid against NDoH staff.”
By LULU MARKHEALTH facilities are paying for medicines to ensure patients receive some sort of relief in the face of ongoing shortage in supplies, Public Accounts Committee (PAC) chairman Sir John Pundari says. The committee paid a surprise visit to two facilities – the Gerehu General Hospital and Kaugere Health Centre. It was part of an intended provincial tour aimed at getting factual information on what was actually happening as far as procurement and supply of medicines were concerned. Sir John said since Gerehu hospital was a city facility, it should not have had any problems. However, he asked chief executive officer Dr Steven Yennie to explain reports of various shortages which forced patients to buy medicines from private clinics with prescription from the hospital. “The challenges are basically enormous in terms of funding for us to operate as a level-five provincial hospital,” Dr Yennie said. “With regards to our medical supplies, it’s been a chronic issue of supplies not being available on time.” Dr Yennie said it was true that patients were told to buy medicine at private clinics at times. He said LD Logistics Company (LDLC) delivered supplies and did so readily the big orders but did not deliver on time sometimes. In the event when the delivery of supplies from the Badili Area Medical Store was taking too long or shortage of emergency medicines, the hospital used its internal revenue to order drugs from private pharmaceutical companies in the city, he said. Dr Yennie said the hospital charged its patients K2 for every visit. “If Badili is slowing down, we use our own money for that and we constantly follow up using our own vehicles.” Dr Yennie said in 2017 an analysis of a provincial hospital operating in the capital city led to a submission of K40million but it was given only K12million of which K8.5 million went to monuments and K1.2 was to goods and services. “We cannot operate beyond the confinement of that money,” Dr Yennie said. Josephine Mamis, the administrator of the Kaugere Health Centre, a Foursquare Church-run facility, said its orders were not delivered on time as well and this year there was shortage of medicines for eight months. She said the centre received its 100 per cent medical kits just recently. She said 50 to 60 patients visited the clinic every day and were checked and sent away with prescriptions. The clinic, she said, was using funds generated from the consultation collection fee of K2 and funding assistance from the church to have basic drugs available during the shortage.
THE Public Accounts Committee (PAC) has asked National Procurement Commission (NPC) acting chief executive officer Simon Bole to present all the documents used in awarding medical supply procurement contracts since 2014 on Monday. PAC chairman Sir John Pundari said the Health Department nominated a company as its first choice which was K23 million cheaper than their second choice (BPPL). “So there’s got to be some compelling reasons why CSTB (Central Supply and Tenders Board) made certain recommendations to the National Executive Council. If there was any then the committee wishes to know,” he said. “That’s the reason you will provide, with all the reasons, backing up certain tenders to be awarded the contract.” Bole, who has a Masters in business administration, was the general secretary for the People’s Action Party from 2006 to 2018. He said he was appointed to acting CEO of NPC since April 1 this year through the National Executive Council. Prior to this appointment, he said he did several consultancy jobs for (NPC), which was then called the Central Supplies and Tenders Board. He said one of his projects as a consultant was the preparation of the National Procurement Act which was authorised by the administration of the former chairman Philip Eledume. Bole added that despite him being the acting CEO, the current Finance secretary was the chairman “which decides and makes decisions on most of the tenders”. PAC deputy chairman Gary Juffa said: “We would like to understand the reasoning, the technical evaluation processes, behind the awarding of these contracts. He stressed that it was necessary to also understand why the people involved came to the decision where they were satisfied to award this contract at K20million more than other contracts, including previous contracts, and even without having the ISO 9001 certification. Juffa said it was important to provide all the documents available, including the details regarding the awarding of the contracts. He said this would also include the working papers, the final report, the list of all offers involved besides their curriculum vitae. “I want to understand how your org(anisation) and your staff came up with this conclusion.” Bole was asked by the PAC to paraphrase in his own words what he would bring on Monday in a way to show that he understood everything.
By REBECCA KUKUHEALTH secretary Pascoe Kase told the PAC that he was surprised the contract to procure and supply medicines was awarded to Borneo Pacific Pharmaceutical Ltd (BPPL) in 2014.
“After going through the documents, I was surprised to see BPPL was awarded the contract and not City Pharmacy Ltd (CPL) who had bid in partnership with MissionPharma.
“The NDoH recommended CPL in partnership with MissionPharma as its first recommendation and BPPL as second. We sent our recommendations to the Central Supplies Tender Board (CSTB) and it did their own recommendations to the Government,” he added.
Kase denied knowing why CSTB changed the recommendations.
However, PAC chairman Sir John Pundari told Kase that the committee had copies of letters that showed that the recommendations were changed in a decision that was made with the then Health Minister Michael Malabag and Kase.
Sir John said that following the awarding of the contract, CPL wrote to Malabag asking him to stop the contract and conduct an investigation to establish if the contract was awarded through the right process. “Malabag responded to them.
“In fact, the letter from Malabag was written by yourself, secretary Kase,” he said.
Kase said that he would check his records and present his findings at the next inquiry hearing.
BPPL chairman Sir Martin Poh said: “Our bidding price are the lowest.”
The PAC had asked Sir Martin to comment on a independent report that found that the prices to procure medicines and pharmaceutical drugs had a 200 per cent mark up.
Sir Martin said: “Our prices compared to others were the lowest.
“BPPL has been in the country since 1997 and we are now 22 years old. “Before coming to Papua New Guinea, we operated in Malaysia for 15 years and so we have the experience in procuring medicines and drugs.
“All medicines and drugs we procure have certification from the manufacturers.”
He added that 80 per cent of his company’s annual revenue was made from government contracts with the NDoH.
“And I deny that we charge 200 per cent mark up on medicines and pharmaceutical drugs that we procure,” he said. The inquiry was adjourned to Monday.
Labour inducing drug distributed despite failing quality test
IN 2014, Misoprostol, a drug that helps induce labour for pregnant women, was distributed throughout Morobe despite failing the quality test, the Public Accounts Committee (PAC) heard yesterday.
National Department of Health (NDoH)’s acting executive manager (chief medical services) Dr Duncan Dobunaba said he could not confirm whether Misoprostol was recalled and destroyed.
Dobunaba was testifying on the fifth session of the PAC’s inquiry into the procurement and supply of medicine and medical kits worth more than K100 million to Borneo Pacific Pharmaceuticals Ltd (BPPL) this year.
He said all medicines and pharmaceutical drugs brought in by BPPL were sent to a facility in Taiwan to be tested.
“All the medicines and pharmaceutical drugs had passed the test except Misoprostol,” he added.
However, Global Logistics, the company contracted to distribute and deliver medical supplies in Morobe at that time told the inquiry in writing that they had gone ahead and delivered the medicines and pharmaceutical drugs that were brought in by BPPL before the test results.
PAC deputy chairman Gary Juffa told Dobunaba to explain why the failed Misoprostol supplies were not recalled and destroyed.
Dobunaba said: “At that time, I was attached with another sub-department in the NDoH.” He, however, agreed with Juffa that the failed Misoprostol could have killed many pregnant mothers who needed to be induced to deliver.
Dobunaba said he would check the records and report back to the PAC on Monday to confirm whether the Misoprostol were distributed.
ISO 9001 Certificate removed by unanimous decision: Kase
THE ISO 9001 Certificate was removed as a requirement in 2014 by an unanimous decision during the pre-bid meeting to procure and supply medicine and pharmaceutical drugs, says Health Secretary Pascoe Kase.
Kase who had told the Public Accounts Committee earlier that the ISO 9001 certificate was removed at the request of City Pharmacy, retracted his statement yesterday.
He said according to the minutes of the pre-bid meeting, the decision was made unanimously by all who attended the meeting.
“Previously, ISO 9001 Certificate was never a requirement.
“So the bidding companies asked for clarification but after that, there was an unanimous decision to remove it from the ISO as none of the companies had the ISO 9001 certificate,” he said.
Deputy committee chairman Gary Juffa questioned Kase if it was okay for the country to lower its standards and put the lives of the people at risk.
“Why should we lower our standards so that companies who bid can be eligible?” Juffa asked.
“Shouldn’t the companies lift their standards so that they can meet the requirements?”
“And if they had failed to meet the requirements then we could have tendered internationally for the sake of our people.”
Juffa said the Health Department had failed the people and put many lives at risk by lowering standards.
“If Australia and New Zealand and other countries are using this standards, why are we not?”
There was a need to set up a logistics firm: Owner
LD Logistics Company (LDLC) was set up in 2007 by two friends and seven years later it secured a K25 million contract to deliver medicines and pharmaceutical drugs nationwide.
LDLC owner and director Francis Wagaia told the PAC inquiry that he started his company after discussing on “the need for a logistics company” with his friend who was working for the NDoH.
Wagaia, who currently has an existing K25 million contract to deliver routine medical supplies and the 100 per cent medical kits in Momase, was first contracted on a “need to basis” shortly after registering his company in 2007.
From 2007 to 2010, LDLC was carrying out deliveries for the NDoH (National Department of Health) on a “need to basis” and in 2014 won a K25.5 million contract to supply medicines nationwide.
In 2015, LDLC’s contract was extended for another year, also valued at K25.5 million.
And in 2016 and 2017, he continued to supply medicines at K25.5 million and K30 million respectively.
PAC chairman Sir John Pundari asked why there was no tender advertised from 2015 to 2017.
“Although this may sound like a success story, what does not make sense is that a company that had no experience, no capacity at that time was given a contract by the NDoH to supply medicines nationwide,” he added.
Sir John also called on EMTV deputy regional head of news Scott Waide to confirm the shortages of medicines in Morobe, a province that LDLC serviced.
Waide confirmed that in mid-2018, Morobe faced an acute shortage of medicine.
NDoH corporate manager Paul Dobsy was also called by Sir John to explain why LDLC continued to be given the contract despite the continuous complaints lodged with the department on the company’s failure to deliver supplies on time.
Contract to deliver drugs in NCD included ‘air freight’ costs
A K1.6m Government contract to distribute and deliver medicine in the National Capital District was awarded on a defective document that included air freight in its quotations, an inquiry heard.
Public Accounts Committee member Robert Naguri questioned why the contract for NCD submitted by the LD Logistics included the cost of air freight. “The medicine and pharmaceutical drugs are at the Area Medical Store in Badili and the contractor will just have to pick it up from there and deliver them to hospitals and clinic around NCD.
“This does not include Central. Just NCD.
“So where were they going to fly the medicine to?” Naguri said according to the documents, more than K689,000 was quoted for air freight.
Sea and road freight was K287,000-plus.
He questioned why the evaluation committee failed to pick up this very important detail.
“So it’s safe to say that the contract was awarded based on a defective bidding document that clearly was misleading.
“Where will they be flying the medicines to and from in NCD,” he questioned.
Naguri told the Department of Health corporate manager Paul Dobsy Dobsy to provide a report and all documentation of the contract to the committee on Monday.
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