12/09/2020
+++Public Accounts Committee Presents Health Enquiry Report in Parliament+++
The Public Accounts Committee presented its First of 2 Reports from its Inquiry in the supply, procurement and distribution of medicines in PNG to Parliament.
The First Report outlines a way forward that will address the issues that have resulted in medicine shortages around the country.
The Second Report will conclude the findings of alleged corruption and abuse and will be tabled and passed on to relevant state authorities.
Concerns have been raised by the public on their desire to see justice served from the Inquiry. We assure the people that justice will be served and your PAC will do it's part by tabling our findings.
Equally important is for us to seek reform that will bring medicines to the people in our rural communities. For this reason, PAC has moved quickly to propose reforms while the other part of the Inquiry is proceeding. We must make sure our people are not dying from curable diseases.
The PAC faced many challenges; but through strong and decisive leadership from Chairman Hon. Sir John Pundari, Deputy Chairman Hon. Gary Juffa, Hon. Robert Naguri, Hon. Sailo Waipo, Hon. William Tongap and Hon. Phillip Undialu; the Committee was able to overcome these obstacles.
For many years the PAC has been silent and has not been seen to be performing its Constitutional functions. This Committee was very different and have given our people a glimpse of what other thriving democracies around the world enjoy when all arms of Government function to their purpose.
Compared to similar Inquiries and Reports, this was conducted with minimal cost to the public purse and has set a standard for the PAC and other Inquiries in the future.
The Committee gave their committment and especially the Chairman often used his personal resources to produce results. Which has to be acknowledged. Talk is cheap as they say.
Many Inquiries produce nothing with huge public funds spent, and others are stalled waiting for more funds to be allocated.
The Inquiry uncovered gross incompetence and lack of transparency in the Medicine Supply, Procurement and Distribution (MSPD) Branch of the Health Department. This is the branch responsible for awarding of contracts and oversight of the distribution function of medicines.
The main recommendations for reform is to make the failed MSPD branch redundant, and form an independent authority that will oversee the supply and distribution functions of medicines.
The proposed authority will basically:
✅ Evaluate medicine manufacturers and suppliers.
✅ Test medicines as they enter the country.
✅ Use Post PNG to distribute medicines from POM to the 21 provinces.
✅From 21 provincial centres, the Provincial Health Authorities and District Authorities can collect the medicines and deliver to the health facilities themselves or through logistics contractors.
✅ Engage all donors to work in this transparent system to achieve better outcomes.
Why is the authority justified?
⛔ Inadequate testing is being done on drugs entering the country and our people are at risk of being given counterfeit drugs.
⛔ There is a undeniable lack of transparency in the MSPD branch. Ignoring this is costing lives.
⛔ Donors are running their own programs and systems because they do not rust the MSPD branch.
⛔ Over 15,000 children are dying from curable illnesses and 1,800 mothers die from childbirth each year in PNG. This cannot be allowed to continue.
⛔ Financial and procurement constraints are giving rise to delayed payments and deliveries; and a large backlog of outstanding payments exists. This affect performance on contracts.
⛔ The current system has a lack of planning and monitoring capability, and internal controls.
⛔ Past reports have recommended these reforms and have been ignored.
The new system proposed is a practical, transparent and sensible approach in comparison to the tedious, mismanaged system that is currently failing.
The PAC recommendations are supported by various stakeholders in the health fraternity that were engaged in the Inquiry.
The PAC Report was universally welcomed and endorsed by Parliament and we look forward to implementing the reforms.