Aust withdrew funds, says Kase

By REBECCA KUKU
HEALTH secretary Pascoe Kase says the Australian Government withdrew its A$38million (K75million) funding project that supplied medicines to Papua New Guinea in 2013 due to the International Dispensary Association not being awarded the contract.
Kase made the statement during an inquiry conducted by the Public Accounts Committee yesterday.
In 2010, a corruption scandal within Papua New Guinea’s health system left hospitals running out of drugs and prompted the Government to ask for Australia’s help in stocking health centres.
But the arrangement was temporary and in 2013, the Government took responsibility for procuring the 2014 supply of medical kits.
Australia agreed to keep 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.
The accreditation ISO 9001 is an accreditation for quality management systems which, in terms of a pharmaceuticals, helps ensure the drugs are safe and effective.
The ISO 9001 standard was later removed from the requirements and the contract was awarded to Borneo Pacific Pharmaceutical Company which did not have the internationally-recognised standard ISO 9001 at that time.
Kase, however, told the inquiry that ISO 9001 standard was not part of the Papua New Guinea procurement and supply requirement but was put in by an Australian who was working with the Health Department at that time.
He also claimed that the call to remove the ISO 9001 standard as a requirement in 2013 was from City Pharmacy and not the Health Department.
“Let me also put on record that the International Dispensary Association was not awarded the contract at that time as they were not certified locally by the Papua New Guinea Medical Board which is one of the requirements,” Kase said.
The inquiry, which started on Tuesday, will continue to look into the history of the procurement.