#PAC exposes corruption and incompetence in the National Department of Health

Deputy Chairman, Gary Juffa and Chairman, Sir John Pundari at Kaugere clinic

Inside a packed conference room on the first level, B-Wing of Papua New Guinea’s Parliament house, the Public Accounts Committee (PAC)  waits for senior members of the Health Department.

Already present are representatives from logistics  and pharmaceutical companies who have been summoned to give evidence in an  investigation into a health system in crisis.
After arriving half an hour late,  Health Secretary,  Pascoe Kase, walks into the packed conference room, sheepishly smiling and nodding an apology to the waiting committee headed by Chairman John Pundari and Deputy, Gary Juffa.
They’re not impressed by his lack of punctuality.
Over the past six years, Pascoe Kase, earned a reputation of   dodging  the media at every occasion.   But in October and November, his evasive maneuvers  were halted and  his arrogance cut down to size by  the parliamentary committee  summons  that compelled him to attend the investigation and give evidence as the star witness.
Kase’s mood quickly shifts as a barrage of questions hits him.
He is asked about logistics, pharmaceutical standards and the contract  bidding process that the committee has come to find, is riddled with corruption and ‘insider trading.’
Deputy Chairman, Gary Juffa, is relentless and unforgiving.  He squeezes  out vital pieces of a puzzle that show how Papua New Guinea’s  Health Department lowered standards by ditching international quality management systems to allow pharmaceutical companies to qualify for the tender bidding process.
“I want to go back to the ISO 9001…What’s your understanding of specific set of standards? What does that mean according to your knowledge?” Juffa asks.
“My personal knowledge? Or my…”
Kase attempts to answer and is cut off by the frustrated Deputy Chairman.  “…Well, your professional knowledge. You’re the Secretary for Health so I’m assuming you would know about this…”
Secretary Kase gives a long winded response about how there are technical officers who give him advice about various operational areas of the department.  But falls short of answering the question.
Juffa again cuts him off.
“Sir…Sir… what does the acronym ISO 9001 stand for? Do you know?
“I don’t know. I would want some of the technical people to tell me,” Kase replies.
Juffa then lectures the Health Secretary about the meaning of the ISO 9001, about international standards and asks why the requirement was removed prior to the bidding process for a pharmaceutical tender.
It was just one of many examples of  the incompetence at the management pinnacle of the health department, shamelessly demonstrated in front of thousands of Papua New Guineans watching the proceedings live on Facebook.
  1. MEDICINE SHORTAGES STILL EXIST. Chronic shortages of medicines continue in nearly all rural clinics.
  2. MOST EXPENSIVE BIDDER CHOSEN. Borneo Pacific’s bid of K71 million was K20 million higher than the second bidder, City Pharmacy Limited.
  3. NO PRIOR EXPERIENCE. At least two logistics companies awarded drug distribution contracts did not have prior experience in drugs distribution.
  4. NO ELECTRONIC TRACKING. One Chinese owned logistics company told PAC that it does not have an electronic tracking system because it was “too expensive.”
  5. COLLUSION WITH LOGISTICS COMPANIES. Former and current Health Department staff alerted individuals and companies to upcoming drug distribution tenders and assisted in drafting tender documents.
  6. OPERATING WITHOUT CONTRACTS. LD Logistics operated without a contract for three years after their contract expired and were paid more than K20 million. They were paid in portions of K500,000 through provisions under the finance Management Act.
  7. STANDARDS LOWERED. The National Department of Health removed the ISO9001 compliance requirement prior to a bidding process, thereby, lowering standards to cater to demands of companies who were bidding.
  8. BRIBES PAID. A Senior Health Department Manager, asked for and was paid bribes totaling well over K100,000 in 2014.
The committee found that that health compliance standards were deliberately lowered so that companies could qualify. They also found that a drug used to induce birth had failed lab tests, yet may have been distributed.  The health department team, when grilled, could not say if the drug had been recalled and removed. They didn’t know.
A litany of irregularities continued to be highlighted over the next three days.
One of the logistics companies –  L & Z –  owned by a Chinese national with no experience in medicine  distribution, was still awarded a 17 million Kina contract because of the owner’s  links with a former health department staff who wrote the tender application.
Another logistics company that operated for three years without a formal contract, was still paid more than 20 million Kina, with the secretary using his legal provisions to make part payments of  up to half a million kina.
Then the bombshell came when the owner of another logistics company named a senior manager who he had paid bribes totaling up to K100,000.
The public has followed the inquiry with keen interest. Some have offered leads to new evidence that is being used by the committee.
The revival of investigations six years since the last hearings is quite refreshing for the PNG public.

9 comments on “#PAC exposes corruption and incompetence in the National Department of Health

  1. Good work, keep it up


  2. It is very sad to see that we have to lower our standard so that expert owned companies can make business out of our own people.
    Thank you Scott. Waide for covering the story and bringing it to those of us who could not watch it on FB.


  3. It is really shocking to note how the Secretary for Health could under the meaning of ISO9001 standards.


  4. Dean Merena

    I was not aware of a body known as PAC. Until Marape-Davis government came to power.

    Appreciate what PAC has done so far, particularly the inquiry into the National Department of Health.


  5. Peter Akori

    Thank you PACK, the next department should be of course Education department, Forestry Department, Lands Department and even finance because of obvious questionable dealings.


  6. Harrison19

    On a more brighter note,
    Well Done Sir Pundari and Mr Juffa and the rest of the PAC team, PNG is behind you!
    And Mr Waide – thank you for the updates and for covering the most sensitive issues/stories., the issues that matter the most in this unique country we call home! Keep up the good work.. trupla mahn!!


  7. Jacob Yombai

    Thank you Scott for covering this issue!


  8. Harrison19

    A damn shame! Mr Kase, do you not have any remorse at all for using public monies for your own benefit while our mothers, fathers, sisters, brothers and children are dying in hospitals around the country!!!
    What a bloody looser! I hope you get sacked and thrown in jail and rot in there for the remainder of your miserable life!


  9. Patrick Ume

    Well returned. I love the story


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