Anger over no-show by firms’ bosses

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THE Public Accounts Committee has warned the owners of two foreign-owned companies contracted to distribute medicine around the country “not to defy summons ever again” after failing to attend yesterday’s inquiry.
L&Z Enterprise Logistics Company directors Hong Ling and Chang Chung instead sent local general manager (logistics) Paul Pio to the inquiry.
Owner of the Telemu No 16 Ltd Xiao Liang Liu also sent a local employee.
Deputy committee chairman Gary Juffa, Northern Governor, warned them they would “face consequences” if they again failed to turn up today.
“Do not defy summons again. Bring the owners,” Juffa told the local employees representing the companies.
It was the third session of the inquiry into the procurement, supply and distributions of medicine.
Juffa said they had summoned the owners, not the employees, to appear before the committee.
“We can provide a translator if that’s the problem,” he said.
Pio said one of the directors was “out of town, and the other one is here but sent me instead as I am in charge of the logistics”.
Pio said he had worked for 20 years with the Health Department’s procurement section and an Area Medical Store manager as well. He joined the company in 2014.
“We currently have two contracts with the Health Department.
“One is the routine supply for Southern worth K9.8m and the medical kits supplies also for Southern worth K8.1m,” he said.
“The company has been operating in PNG since 2011 and won the contract in 2014.”
Juffa then queried Pio how the company won the contract at the same time he joined it, referring to his 20-year employment with the procurement section. “Government contracts below K10m cannot be awarded to foreign-owned companies.
“How was it awarded to this Chinese company? Was it due to your 20-year relationship with the procurement department, that the company secured the contract after you joined them?”
Pio maintained that it was a public tender and anyone could bid for it.
Juffa told him he was not the owner but a local.
Committee member William Tongamp, Jiwaka Governor, told Pio that he and his employers had wasted the committee’s time.
“A Chinese company who saw fit to enter into contracts worth less than K10m that is reserved for Papua New Guineans by law, a company that wants to do business in our country but fails to respond to our summons?
“You tell them to come tomorrow (today) to the inquiry so that they can answer to the committee and the people of this country.”


  • Health department officials have been lured and benefiting outright by the logistics and every pharmaceutical companies registered in PNG especially. Gift packs ,employment, dinners ,end of year parties, and so forth have been the norm.
    Sadly to say, a remote aidpost in this part of the world is still running out of daily basic but essential medicals.

  • It sure does smell fishy. Nail them and get to the root of this seemingly illegal and improper awarding of the contract. I am sure there must have been loads of money passed ‘under the table’ for them to secure these contracts reserved for local businesses.
    I have no doubt the PAC will do a satisfactory job on this one seeing as the no-nonsense Garry Juffa, MP and Governor for Northern Province is in the Committee.

  • Why can’t PNGDF distribute the goods. I am sure that they need the money and it would be good to have them actively engaged in good things instead of sitting around.

  • Have the DOH secretary answer to these awarding of contacts and PAC please don’t leave any stones upturned until you get to the bottom of this contract issue. I bet the secretary is benefiting from it. HANG them all!!

  • Go ahead Juffa nail them all. Pio & the DOH secretary are puppets for the these aliens. Lock them up & throw the keys away.

  • Money belongs to 8 million people of Papua New Guinea. Please pursue this issue until those found to breached law should serve their share of punishment.

  • Let’s get to the truth and hopefully lock up corrupt officials at NDoH. I would not be surprised if politicians benefitted as well.
    My bold prediction is the whole exercise will be a waste of money and time and no one will be punished at the of this enquiry.

  • It is a requirement of law that one of the conditions of entry into PNG, every foreigner must have English proficiency. It is therefore incumbent upon the two companies to demonstrate their English proficiency. Holy Moses, why would PAC waste its timing in provision of interpreter?

  • Lets see the end results of what the Public Accounts Committee is doing, time is wasted, resource waste, money spent, this is our money our country, please rescue this nation that is in the hands of the devil. we want to see these people behind bars for the good of the nation…….

  • Those implicated & white-collars found guilty by Courts, if referred to fraud-squad by PAC, the PNGuineans will
    ONLY be satisfied if they are put behind bars and cease their accounts and recouped all monies & assets/ properties that are in their possessions.

    Thats the only satisfactory solution the PNG nationals can get from depriving their rights to get access to those monies stolen for our needy.

  • How did this contract got past CSTB and State Solicitor’s Office? This shows that there are many similar contracts being awarded by CSTB and have gone past State Solicitor’s office and are not been implemented properly.. As a result, we have many incomplete GoPNG funded projects and programs across the country that need audits and thorough investigation.. Please PAC continue the good work into all such contracts and refer the culprits to face justice..

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