Aust: Why K89m pulled out

AUSTRALIA had to pull out a A$38 million (K89mil) aid programme to supply medicine to PNG in 2013 because it was concerned about how the contract was awarded at that time.
A statement from the Australia High Commission said it had a long history of supporting the PNG Government to improve the health outcomes of its people “and will continue to do so”.
“Issues relating to the matter being investigated by the Public Accounts Committee (PAC) are on public record and we refer you to media reporting from the time,” the commission said.
Health Secretary Pascoe Kase told the PAC inquiry last week that the Australian government withdrew its funding because the International Dispensary Association was not awarded the contract for the procurement, supply and distribution of medicine in 2014.
The inquiry into the awarding of two government contracts worth K100 million to the Borneo Pacific Pharmaceutical to supply medical kits and antibiotics in August also looked into the history of procurement and supply of medicines in PNG.
It also discussed why Australia pulled out its A$38 million project to supply medicines in 2013.
In 2010, a corruption scandal in Papua New Guinea’s health system saw hospitals running out of medical drugs.
It prompted the government to ask for Australia’s help in stocking health centres.
But the arrangement was temporary and in 2013, the PNG government took over the responsibility of procuring the 2014 supply of medical kits.
Australia agreed to continue funding the programme on the condition that the tender process was transparent and the companies had certain accreditation, including an internationally-recognised standard ISO 9001.
It is an accreditation for quality management systems which ensures that the drugs are safe and effective.