Borneo’s K65m contract explained

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Borneo’s K65m contract explained

PORT MORESBY: National Procurement Commission chief executive officer Simon Bole says there is nothing wrong with the awarding of a contract to Borneo Pacific Pharmaceutical Ltd.

“The contract is not a new one but one that was awarded in 2018 through a tender process.

“In 2018, when the contract was advertised on Oct 22, through Central Supply and Tenders Board number 3847, it was processed for a three-year contract, Borneo was recommended for the first preferred bidder,” Bole told The National in an interview.

For story context, read this: https://pngcybermonitor.blogspot.com/2021/12/borneo-continues-to-get-millions-of.html (Borneo continues to get millions of Kina in contracts from Health Dept)

The issue was reported by The National:

Bole explains Borneo contract

December 22, 2021The NationalMain Stories

By MIRIAM ZARRIGA
NATIONAL Procurement Commission (NPC) chief executive officer Simon Bole says that there is nothing wrong with the awarding of a contract to Borneo Pacific Pharmaceutical Ltd.
Bole said the contract was not a new one but one that was awarded in 2018 through a tender process.
“In 2018, when the contract was advertised on Oct 22, through Central Supply and Tenders Board number 3847, it was processed for a three-year contract, Borneo was recommended for first preferred bidder,” Bole told The National in an interview.
“However, the contract for three years was amended to one year from August 2019 to August 2020,” Bole said.
“In July 2020, Borneo wrote to the Government enquiring about the contract and asking why it was amended to a year.
“In response, then chief secretary Isaac Lupari wrote to the three departmental heads – Finance secretary, State Solicitor and myself – and sought advice on the renewal and we advised him that we cannot renew the contract as it had expired.
“However, a renewal could be granted through a certificate of inexpediency (COI) or a normal tender.”
Bole said due to the emergency of having medical supplies in the country due to the Coronavirus pandemic, the advice was given the COI.
“When the contract expired in August 2020, and under the National Procurement Act section 69, the National Executive Council (NEC) could endorse a COI,” he said.
“The Health Department, as the State agency through the office of the Health secretary in 2020 requested for the COI, a legal clearance was undertaken with NPC endorsing the request and it was sent to the NEC.”
Bole said that was why NEC endorsed the COI and a year’s contract of K65 million.
According to a NEC application for COI, the supply of 100 per cent health centre and aid post kits throughout the country has been awarded to Borneo Pacific at the fixed price of K65,271,338.94, goods and services tax inclusive, for one year only due to current shortage of drugs.
Borneo Pacific had been the subject of independent investigation by the Public Accounts Committee chaired by Sir John Pundari and subsequently cleared of any and all claims made against it.