Australia withdraws funding from Papua New Guinea over corruption and fake drug concerns
Australia has withdrawn funding for a $38 million program that supplies medicine to Papua New Guinean health centres, due to concerns about the way PNG has awarded contracts. Previously, Australia's aid agency chose the supplier and distributor for the medicines, but this year that process was handled by PNG. In June, the PNG government removed a crucial quality-control criteria and later awarded the contract to local company linked to a Chinese supplier of sub-quality drugs. Doctors say the distribution of ineffective medicine in a country rife with TB, malaria, pneumonia and gastro will cost lives. Three years ago, a corruption scandal within Papua New Guinea's health system left hospitals running out of drugs and prompted the PNG government to ask for Australia's help in stocking health centres. For two years, the International Dispensary Association supplied medical kits to almost 3,000 health facilities across the country. Dr Glen Mola, treasurer of the Medical Society