Inquiry starts into K100mil deals

THE Commission of Inquiry into the Health Department, National Procurement Commission (NPC) and Borneo Pacific Pharmaceutical on the awarding of two government contracts worth K100mil to supply medical kits and antibiotics in August started in Port Moresby yesterday.
Public Accounts Committee chairman Sir John Pundari, pictured, said at present, 30 hospitals, 854 health facilities and 2,032 aid posts were receiving medical supplies from the Health Department’s supply system.
“During the 80s and 90s, the Health secretary was Dr Quinten Reilly and medical supplies at that time were ordered by international tender following WHO’s (World Health Organisation) advice,” he said.
“Tenders were advertised and assessed by the department and the tender committee operated independently, advising the health secretary to sign on their endorsement.
“Drug amounts were calculated from the previous year’s usage plus estimated increases from population growth etc.
“The bid offered the best quality at the best price was selected after assessment and clearance from WHO.
“There was a system of monthly assessment of drug levels at each health institution from Aid Posts up so that accurate drug requirements could be estimated.”
Sir John said unlike using private contractors today, distribution was done internally by the Health Department via provincial medical stores and health institutions nationwide.
“Some of these medical stores have disappeared over the years due to negligence which has affected the distribution of supplies at regular intervals, especially in remote areas,” he said.
“In 1999, development partners identified the need for and initiated the ‘push system’ or medical kit system.
“The purpose of the kit system was to fill crucial gaps in the supply of medicines, especially to the rural areas. This system delivered medical kits that contained basic required drugs directly to health centres and aid posts.”
Sir John said later in 2007, a Ministerial Task Force was formed who laid the road map for medical supplies and supply chain management.