Contract to deliver drugs in NCD included ‘air freight’ costs


A K1.6m Government contract to distribute and deliver medicine in the National Capital District was awarded on a defective document that included air freight in its quotations, an inquiry heard.
Public Accounts Committee member Robert Naguri questioned why the contract for NCD submitted by the LD Logistics included the cost of air freight. “The medicine and pharmaceutical drugs are at the Area Medical Store in Badili and the contractor will just have to pick it up from there and deliver them to hospitals and clinic around NCD.
“This does not include Central. Just NCD.
“So where were they going to fly the medicine to?” Naguri said according to the documents, more than K689,000 was quoted for air freight.
Sea and road freight was K287,000-plus.
He questioned why the evaluation committee failed to pick up this very important detail.
“So it’s safe to say that the contract was awarded based on a defective bidding document that clearly was misleading.
“Where will they be flying the medicines to and from in NCD,” he questioned.
Naguri told the Department of Health corporate manager Paul Dobsy Dobsy to provide a report and all documentation of the contract to the committee on Monday.


  • PAC, you’re opening up a can of worms….stick with it. Very interesting indeed! Hahahahaaaaaaa
    Dobsy dobsy’s is going to be interesting!!!!!!!!

    This Paper, The National will have to follow this all the way.

  • Airfreight in NCD??? The contract would cover Central Province, please PAC review the contract.
    Finding maybe misleading. If it is true that airfreight was included in the contract; who blindly awarded the contract?? CSTB?? Very fishy.

  • Can the evaluation committee members questioned as to why they awarded this contract. They need to answer.

  • Kase was the former head of the major AusAID contractor to NDoH. His blatant lies that he knows nothing about the old Australian procurement on drugs for PNG is misleading and amounts to defiance of law. He should be charged criminally.

  • its sad reading all this findings, we the people of PNG were cheated on by some self-centered money hungry people for their own benefit while our mothers and children in the rural areas continue to suffer, thank you PAC for taking the leap and looking into the continues shortfall of basic medical supplies, the Government, its Ministers and members have heard the cries of the people and have done right for the people, this is the first of its kind digging into rotten-currupted soil and exposing real dirt, we pray that you continue into other departments as well exposing high level corruption.

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