PAC inquiry heat resumes early next year
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| PAC members to visit hospitals, clinics and ward posts nationwide before resuming the inquiry heat early next year. |
PAC inquiry heat resumes early next year
PORT MORESBY: On Nov 25, 2019, Day 7 of the Public Accounts Committee (PAC) inquiry into the National Department of Health (NDoH)’s K100 million award for procurement of antibiotics and medical kits this year, the managing director of a logistics company dropped a bombshell.
Global Customs & Forwarding Ltd (GCF)’s Harupa Peke claimed that he paid a K100,000 bribe to a member of NDoH’s Technical Evaluation Committee.
On Dec 3, 2019, Day 8 of the inquiry, he testified again revealing more details about bribe and threats.
And the inquiry has been adjourned to early next year. Here are the latest on the inquiry as reported by The National:
Director tells of bribe, threats
By REBECCA KUKUA COMPANY managing director told an inquiry yesterday how a Health Department official, who was paid only K20,000 of the K70,000 he demanded, stalled payments to the firm for the medicine supplied.
Managing director of Global Customs & Forwarding Ltd Harupe Peke also told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that after he wrote a letter of complaint to the Health Department about the matter, he was threatened to withdraw it, otherwise he and his family would be arrested.
He identified the department official who demanded the K70,000 as corporate manager Paul Dopsie.
Peke told the inquiry chaired by Sir John Pundari in Port Moresby that he was threatened by an official he knew only as “Mr Puli” from the Finance Department on Oct 5, 2018 to withdraw the complaint or he and his family would be arrested. He was told that there was no Whistleblowers Act in place to protect him, and that his contract with the department would be thrown out.
Company accountant Basil Roma, who supported what Peke said, told the committee that Dopsie had called Peke on Sept 29, 2016 demanding K70,000. But Peke only gave Dopsie K20,000.
“I went with my boss (Peke) and withdrew the K20,000 from the Westpac Bank. I remember it was around 1.40pm when we drove to the Stanley Hotel car park to meet with Dopsie. He was not happy with the K20,000 and wanted K50,000 more,” Roma said.
Roma said Dopsie later took the K20,000 and left. He said the department’s payments to the company were stalled after that.
Peke said he had paid Dopsie numerous times in the past and was getting fed up with it.
So when Dopsie insisted on being paid K50,000 more, he wrote a letter of complaint to the Health Department.
“On Oct 2 in 2017, Dopsie called me to his office and told me to withdraw the letter of complaint which I did on the next day.
“However, about a year later on Oct 5, 2018, a Mr Puli from the Finance Department called me and asked me to meet with him at the Finance office.
“When I got there, he threatened me to withdraw the complaint against Dopsie or my family and I would be arrested as there was no Whistleblowers Act in place to protect us. He said my current contract with the NDOH would be at stake.
“I didn’t really mind about the second one but was really concerned about the threat issued against my family.” The inquiry will resume early next year.
Managing director of Global Customs & Forwarding Ltd Harupe Peke also told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that after he wrote a letter of complaint to the Health Department about the matter, he was threatened to withdraw it, otherwise he and his family would be arrested.
He identified the department official who demanded the K70,000 as corporate manager Paul Dopsie.
Peke told the inquiry chaired by Sir John Pundari in Port Moresby that he was threatened by an official he knew only as “Mr Puli” from the Finance Department on Oct 5, 2018 to withdraw the complaint or he and his family would be arrested. He was told that there was no Whistleblowers Act in place to protect him, and that his contract with the department would be thrown out.
Company accountant Basil Roma, who supported what Peke said, told the committee that Dopsie had called Peke on Sept 29, 2016 demanding K70,000. But Peke only gave Dopsie K20,000.
“I went with my boss (Peke) and withdrew the K20,000 from the Westpac Bank. I remember it was around 1.40pm when we drove to the Stanley Hotel car park to meet with Dopsie. He was not happy with the K20,000 and wanted K50,000 more,” Roma said.
Roma said Dopsie later took the K20,000 and left. He said the department’s payments to the company were stalled after that.
Peke said he had paid Dopsie numerous times in the past and was getting fed up with it.
So when Dopsie insisted on being paid K50,000 more, he wrote a letter of complaint to the Health Department.
“On Oct 2 in 2017, Dopsie called me to his office and told me to withdraw the letter of complaint which I did on the next day.
“However, about a year later on Oct 5, 2018, a Mr Puli from the Finance Department called me and asked me to meet with him at the Finance office.
“When I got there, he threatened me to withdraw the complaint against Dopsie or my family and I would be arrested as there was no Whistleblowers Act in place to protect us. He said my current contract with the NDOH would be at stake.
“I didn’t really mind about the second one but was really concerned about the threat issued against my family.” The inquiry will resume early next year.
Appointment of chairman queried
By REBECCA KUKUTHE Public Accounts Committee yesterday queried the appointment as board chairman of a hospital the chairman-owner of a company supplying medicine to the Health Department.
Committee chairman Sir John Pundari during the inquiry into the procurement, supply and distribution of medicines said it was a “conflict of interest” to appoint Sir Martin Poh as chairman of the Gerehu Provincial Hospital, while he was chairman of Borneo Pacific Pharmaceutical, a major supplier of medicines to the Government.
Sir John told the department and the hospital management to explain what criteria was used to appoint the hospital’s board chairman.
Hospital chief executive officer Dr Steven Yeni told the inquiry that Cabinet had decided in 2014 to upgrade the Gerehu clinic to a provincial hospital. This was not implemented until 2017.
“In 2017, the board chairman was Peter Del Monte from Brian Bell. But his appointment was later revoked and Sir Martin Poh was appointed by then Health Minister Michael Malabag as the board chairman.”
Sir John then questioned Health Secretary Pascoe Kase why Del Monte was replaced by Sir Martin and what was the criteria used.
Kase said he would have to check with his technical team. Sir John said it was a conflict of interest as Sir Martin was one of the Health Department’s major supplier of medicines and pharmaceutical drugs.
Committee chairman Sir John Pundari during the inquiry into the procurement, supply and distribution of medicines said it was a “conflict of interest” to appoint Sir Martin Poh as chairman of the Gerehu Provincial Hospital, while he was chairman of Borneo Pacific Pharmaceutical, a major supplier of medicines to the Government.
Sir John told the department and the hospital management to explain what criteria was used to appoint the hospital’s board chairman.
Hospital chief executive officer Dr Steven Yeni told the inquiry that Cabinet had decided in 2014 to upgrade the Gerehu clinic to a provincial hospital. This was not implemented until 2017.
“In 2017, the board chairman was Peter Del Monte from Brian Bell. But his appointment was later revoked and Sir Martin Poh was appointed by then Health Minister Michael Malabag as the board chairman.”
Sir John then questioned Health Secretary Pascoe Kase why Del Monte was replaced by Sir Martin and what was the criteria used.
Kase said he would have to check with his technical team. Sir John said it was a conflict of interest as Sir Martin was one of the Health Department’s major supplier of medicines and pharmaceutical drugs.
Hospital out of drugs for 10 months
By Rebecca KukuTHE Kaugere Urban Clinic in Port Moresby has been facing a shortage of medicine for more than 10 months, forcing it to buy supplies from pharmacies and resell to patients at a reduced price.
Clinic administrator Josephine Mamis told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that from September last year to July this year, the clinic had no medicine supply and had to give 50 to 60 patients prescriptions daily.
“Sometimes we would use our own money to buy medicine for those we knew could not afford to.
“And sometimes we bought medicines from the pharmacies and resold them at half price to help our patients,” Mamis said.
“The revenue to purchase medicines and resell at half prices was done through a nominal clinic fee of K2 that was charged to patients.
“But we also used our discretion to not charge K2 for those who could not afford it.
“We placed orders with the Area Medical Store but every time we followed up during those 10 months, we were told there was no supply in stock.”
Mamis said they needed to raise funds to purchase medicine for patients.
“We have patients from Moresby South and other parts of Port Moresby, including some from as far as Central and Gulf,” she said.
Mamis said the clinic finally received a supply of medicine in July this year.
“But again it wasn’t really a full order.
“The 100 per cent medical kits have also been supplied twice.
“However, we do not need most of the items in the medical kits so we donate it to other clinics in the city,” she said.
Mamis said the clinic faced a shortage of basic medicines such as amoxicillin, septrin, panadol and salbutamol.
Clinic administrator Josephine Mamis told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that from September last year to July this year, the clinic had no medicine supply and had to give 50 to 60 patients prescriptions daily.
“Sometimes we would use our own money to buy medicine for those we knew could not afford to.
“And sometimes we bought medicines from the pharmacies and resold them at half price to help our patients,” Mamis said.
“The revenue to purchase medicines and resell at half prices was done through a nominal clinic fee of K2 that was charged to patients.
“But we also used our discretion to not charge K2 for those who could not afford it.
“We placed orders with the Area Medical Store but every time we followed up during those 10 months, we were told there was no supply in stock.”
Mamis said they needed to raise funds to purchase medicine for patients.
“We have patients from Moresby South and other parts of Port Moresby, including some from as far as Central and Gulf,” she said.
Mamis said the clinic finally received a supply of medicine in July this year.
“But again it wasn’t really a full order.
“The 100 per cent medical kits have also been supplied twice.
“However, we do not need most of the items in the medical kits so we donate it to other clinics in the city,” she said.
Mamis said the clinic faced a shortage of basic medicines such as amoxicillin, septrin, panadol and salbutamol.
Clinic still short of common medicine
By SAMUEL BARIASITHE Kaugere Urban Clinic in Port Moresby is facing a shortage of salbutamol, an important drug needed by people suffering from asthma, an official says.
Dr Patrick Koliwan in a report to the Public Accounts Committee inquiry yesterday said the drug (used in inhalers) supplies were very low despite the high number of people being treated with respiratory diseases.
He also revealed that only 40 medicine and medical kits containing the drug were issued annually but usually lasted around 20 days.
“Salbutamol is a drug that opens up your airways in the event of something like an asthma attack,” he said.
“They come in tablets and in puffers (commonly used).
“We have been out of puffers since July.”
Koliwan said salbutamol was one of the drugs people relied on for their quality of life because there was a high number of people with chronic respiratory diseases.
“Some people use the puffer four to six times a day.
“One of these puffers cost about K15 and one patient would need one to two puffers a month.
“So this is one of the drugs that we have really been struggling to provide our patients with.”
Koliwan said because there was a shortage, patients were usually given prescriptions to treat themselves.
“Often patients will delay treatment until they have enough money to pay for their prescriptions.
“This means their condition may deteriorate.
“Staff are negatively affected by drug shortages as well.
“Drug shortages compromise the quality of care we can deliver and reflects poorly on the level of service we offer to the community,” Koliwan said.
Dr Patrick Koliwan in a report to the Public Accounts Committee inquiry yesterday said the drug (used in inhalers) supplies were very low despite the high number of people being treated with respiratory diseases.
He also revealed that only 40 medicine and medical kits containing the drug were issued annually but usually lasted around 20 days.
“Salbutamol is a drug that opens up your airways in the event of something like an asthma attack,” he said.
“They come in tablets and in puffers (commonly used).
“We have been out of puffers since July.”
Koliwan said salbutamol was one of the drugs people relied on for their quality of life because there was a high number of people with chronic respiratory diseases.
“Some people use the puffer four to six times a day.
“One of these puffers cost about K15 and one patient would need one to two puffers a month.
“So this is one of the drugs that we have really been struggling to provide our patients with.”
Koliwan said because there was a shortage, patients were usually given prescriptions to treat themselves.
“Often patients will delay treatment until they have enough money to pay for their prescriptions.
“This means their condition may deteriorate.
“Staff are negatively affected by drug shortages as well.
“Drug shortages compromise the quality of care we can deliver and reflects poorly on the level of service we offer to the community,” Koliwan said.
Delayed treatments can lead to damaging effects, says doctor
THE shortage of medicine has damaging effect on patients, especially the delay in antibiotic treatment for bacterial illness, a doctor says.
Dr Patrick Koliwan of the Kaugere Urban Clinic in Port Moresby told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that many people who sought treatment at the clinic came from poor areas in the Moresby South electorate.
“Most come from single-income families earning less than K400 per fortnight.
“The cumulative costs of travel, consultation and drugs can set a single family back by almost K50 – around 13 per cent of their income,” he said.
“So often, these patients will delay treatment until they have enough money to pay for the prescriptions.
“And this often means that their condition deteriorates.”
Koliwan said even staff at the clinic were affected negatively by the drug shortages.
“It compromises the quality of care that we can deliver and reflects poorly on the level of services we offer to the community,” he said.
Koliwan said the long-term repercussions of a prolonged drug shortage included:
Dr Patrick Koliwan of the Kaugere Urban Clinic in Port Moresby told the Public Accounts Committee inquiry into the procurement, supply and distribution of medicine that many people who sought treatment at the clinic came from poor areas in the Moresby South electorate.
“Most come from single-income families earning less than K400 per fortnight.
“The cumulative costs of travel, consultation and drugs can set a single family back by almost K50 – around 13 per cent of their income,” he said.
“So often, these patients will delay treatment until they have enough money to pay for the prescriptions.
“And this often means that their condition deteriorates.”
Koliwan said even staff at the clinic were affected negatively by the drug shortages.
“It compromises the quality of care that we can deliver and reflects poorly on the level of services we offer to the community,” he said.
Koliwan said the long-term repercussions of a prolonged drug shortage included:
- Reduced compliance for chronic illness that require lifetime treatment;
- deterioration of acute conditions into chronic illness;
- deterioration of chronic conditions into irreversible terminal stages; and,
- Development of drug resistance.
Public has the right to know: Sir John
By SAMUEL BARIASIPUBLIC Accounts Committee chairman Sir John Pundari yesterday clarified that the media should cover the inquiry into the procurement, supply and distribution of medicine as it was in the public interest.
“The public has the right to know because this inquiry is in their best interest and is a public inquiry,” he said.
He was responding to the concern raised by Health Secretary Pascoe Kase that some reports on the inquiry in the media were one-sided and painted a bad picture of the Health Department.
“Normally, we have to clear these reports properly before they go out to the public,” Kase said.
But Sir John said everything that transpired in the inquiry was covered under parliamentary privilege, and no one in the inquiry could attack or blame another for information and evidence presented.
“Everybody summoned to speak at PAC inquiries were asked to take an oath to tell the truth. Thus the media should not be blamed (for putting it out for public consumption).”
He urged the public to stick to the truth and not to make misleading accusations and threats.
Kase said a number of reports about ISO 9001 certificates in the mainstream and social media was “painting a bad picture” of the department.
He called some reports one-sided, inaccurate and had the potential to create panic in the community.
He said even if an ISO 9001 certificate was removed, it did not mean that the department was going to bring in low-quality medicine into the country.
“The requirement for quality medicine is still inbuilt in our processes. We will never do away with the quality of medicines for our people,” he said.
“The public has the right to know because this inquiry is in their best interest and is a public inquiry,” he said.
He was responding to the concern raised by Health Secretary Pascoe Kase that some reports on the inquiry in the media were one-sided and painted a bad picture of the Health Department.
“Normally, we have to clear these reports properly before they go out to the public,” Kase said.
But Sir John said everything that transpired in the inquiry was covered under parliamentary privilege, and no one in the inquiry could attack or blame another for information and evidence presented.
“Everybody summoned to speak at PAC inquiries were asked to take an oath to tell the truth. Thus the media should not be blamed (for putting it out for public consumption).”
He urged the public to stick to the truth and not to make misleading accusations and threats.
Kase said a number of reports about ISO 9001 certificates in the mainstream and social media was “painting a bad picture” of the department.
He called some reports one-sided, inaccurate and had the potential to create panic in the community.
He said even if an ISO 9001 certificate was removed, it did not mean that the department was going to bring in low-quality medicine into the country.
“The requirement for quality medicine is still inbuilt in our processes. We will never do away with the quality of medicines for our people,” he said.
PAC plans hospitals, clinics visits
By REBECCA KUKUPUBLIC Accounts Committee (PAC) chairman Sir John Pundari says PAC members will be visiting hospitals, clinics and aid post nationwide.
He said this when adjourning the inquiry into the National Department of Health (NDoH)’s procurement and supply of medicine and pharmaceutical drugs to early next year.
The inquiry was called soon after NDoH announced on July 18 that Borneo Pacific Pharmaceutical Ltd (BPPL) was awarded two contracts worth more than K100 million to supply antibiotics and medical kits to health centres and aid posts nationwide for a year.
The awarding of the contracts was announced by Health secretary Pascoe Kase which sparked public outrage and criticisms by medical officers.
On Aug 22, the PAC announced that it would hold an inquiry into the awarding of the two government contracts.
Sir John had said: “The inquiry is basically in response to the public outcry when the contracts were awarded.”
Day 1 of the Parliamentary inquiry on Oct 29 saw Sir John outlining the seven-part probe that included the history of the procurement and supply of medicines in Papua New Guinea and the pull and push systems (its procurement process, mechanisms and its efficiency).
The National Procurement Commission (NPC) and the tender and procurement process that was used by the NDoH to award contracts to BPPL was also a focus of the inquiry. Selected site visits were also made to help conclude the inquiry and those with relevant information and knowledge were also summoned before PAC to testify and provide evidence and information.
Kase and his team were summoned to appear before the PAC on Oct 30 to answer and provide information on the history of the procurement and supply of medicines in PNG.
Questions were raised on why the Australian government withdrew its A$38 million (K87 million) programme that supplied medicine to the 1,600 PNG health centres and aid posts in 2013.
Under intense query, Kase said: “The Government had the responsibility to buy medicine for its citizens.”
Day 3 of the inquiry saw Sir John stressing that due to the significance of the issue, the PAC had decided to be fair on all parties and to give them time to prepare their responses.
“The Health secretary and his team will be summoned again on Nov 19 to appear before the PAC, including all other parties of interest,” he said.
“Let me assure you that the PAC will leave no stones unturned, we will stay the course and will make recommendations so that this country, and its people, will get value for money.
“So that any individual, who is a Papua New Guinean, can access quality medicines wherever he may be, at any given time.”
On Nov 19 (day 4) of the inquiry, the National Doctor Association, non-government organisations and logistics companies were summoned to give information and evidence.
He said this when adjourning the inquiry into the National Department of Health (NDoH)’s procurement and supply of medicine and pharmaceutical drugs to early next year.
The inquiry was called soon after NDoH announced on July 18 that Borneo Pacific Pharmaceutical Ltd (BPPL) was awarded two contracts worth more than K100 million to supply antibiotics and medical kits to health centres and aid posts nationwide for a year.
The awarding of the contracts was announced by Health secretary Pascoe Kase which sparked public outrage and criticisms by medical officers.
On Aug 22, the PAC announced that it would hold an inquiry into the awarding of the two government contracts.
Sir John had said: “The inquiry is basically in response to the public outcry when the contracts were awarded.”
Day 1 of the Parliamentary inquiry on Oct 29 saw Sir John outlining the seven-part probe that included the history of the procurement and supply of medicines in Papua New Guinea and the pull and push systems (its procurement process, mechanisms and its efficiency).
The National Procurement Commission (NPC) and the tender and procurement process that was used by the NDoH to award contracts to BPPL was also a focus of the inquiry. Selected site visits were also made to help conclude the inquiry and those with relevant information and knowledge were also summoned before PAC to testify and provide evidence and information.
Kase and his team were summoned to appear before the PAC on Oct 30 to answer and provide information on the history of the procurement and supply of medicines in PNG.
Questions were raised on why the Australian government withdrew its A$38 million (K87 million) programme that supplied medicine to the 1,600 PNG health centres and aid posts in 2013.
Under intense query, Kase said: “The Government had the responsibility to buy medicine for its citizens.”
Day 3 of the inquiry saw Sir John stressing that due to the significance of the issue, the PAC had decided to be fair on all parties and to give them time to prepare their responses.
“The Health secretary and his team will be summoned again on Nov 19 to appear before the PAC, including all other parties of interest,” he said.
“Let me assure you that the PAC will leave no stones unturned, we will stay the course and will make recommendations so that this country, and its people, will get value for money.
“So that any individual, who is a Papua New Guinean, can access quality medicines wherever he may be, at any given time.”
On Nov 19 (day 4) of the inquiry, the National Doctor Association, non-government organisations and logistics companies were summoned to give information and evidence.
- On Nov 20 (day 5), the NDoH, BPPL, NPC and logistics companies were queried;
- on Nov 21 (day 6), the logistics companies, NDoH and EMTV officials were called to provide information and evidence. The logistics company managing-director testified that he paid bribes to a NDoH officer;
- on Nov 25 (day 7), NDoH, Prime Minister and NEC staff and a logistics company testified; and,
- On Dec 2 (day 8), a logistics company presented a witness who told the PAC of the practice of bribery within the NDoH.
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