THE BIGGEST SCAM IN THE PNG NATIONAL DEPARTMENT OF HEALTH (NDoH)

by RODLEY ESAU

Sir John Pundari and the PAC team must thoroughly investigate Borneo Pacific Pharmaceuticals Ltd, former Health Secretary Dr Nicholas Mann, former Director of Medical Supplies Branch Mr Igo Baru, Senior Procurement Officer Mr Elari Kou, current Health Secretary Mr Pascoe Kase and the Boneo's Poh Brothers including Mrs Lucy Poh.

It all commenced during the time of Dr Nicholas Mann who was then the Health Secretary in 2006. Borneo Pacific Pharmaceuticals Ltd was awarded contracts with millions of kina by Dr Nicholas Mann and Mr Igo Baru since and still continues to date under Mr Pascoe Kase. Majority of the drugs supplied are allegedly sub-standards drugs etc.

Interestingly, Mr Igo Baru currently served as a Company Director for Boneo Pacific Pharmaceuticals Ltd.

Right after the 2017 National General Elections, the GoPNG paid Boneo Pacific Pharmaceuticals Ltd K50million for procurement and distribution of medicines and medical supplies including the Health Centre Kits.

Where is the K50 million Kina vanished to? Reliably informed the K50 million was used for the last General Election 2017 in Milne Bay Province for the Alotau Accord. It's only a camouflage awarding the contract to purchase the Medical Kits. In reality, it is the expenses for the members to be paid, support and joined the Government.

In spite of 13 years awarding contracts to Boneo Pacific Pharmaceuticals Ltd, the public health system in PNG continues to deteriorated and experienced prolonged nil stock of essential medicines and medical supplies.

The awarding of the contract to Boneo Pacific Pharmaceuticals Ltd by the top brass of PNG NDoH seems to be the biggest scam in PNGs history since 2006.

Over these number of years, more than K1.5 Billion of Kina has been squandered through this scam. This warrant an immediate Commission of Inquiry.

 The names on Part 1 provided are just a few, more to add on including how LD Logistics Ltd was incorporated (IPA No 1-59669 registered on the 2nd of May 2007) to serve the thieving cartels needs. It was well planned by these cartels in the history of the National Health Department (NDoH).

The Marape-Davies Government MUST warrant an immediate COI, suspend and investigate the following officers involved.

1. Mr Paul Dopsie - Executive Manager Corporate Services (NDoH) directly responsible for the procurement and distribution of medicines and medical supplies.

2. Mr Kenneth Kachau - former Receiving Officer, Central Medical Stores Stores POM. A close aide to Mr Chris Tarur. He is related to Mr Marcus Kachau (Director -Madang Provincial Health Office). Mr Marcus Kachau was also investigated for misuse of K2million health grants. He engaged Mr Allan Kango former pharmacy boss at POM General Hospital as a consultant in the failed "Kalibobo Approaches" medical supplies management program for Madang province. Mr Allan Kango lost the election in 2017. While Mr Kenneth Kachau registered and owned a pharmaceutical company based in POM.

3. Mr Chris Tarur - former Manager/Store Technical Advisor Central Medical Stores POM. He is the mastermind behind the registration of LD Logistics Ltd and awarding of logistics contract with NDoH since 2007. Mr Igo Baru was still the Director of Procurement and Distribution at NDoH that time.

4. Ms Loina Yafai (and or Mr Wauwa Legu) - Technical Officer, Medical Supplies Procurement and Distribution (NDoH). The corrupt and inexperienced technical officers.

5. Mr Willie Kilepa - Technical Advisor, Medical Supplies Procurement and Distribution (NDoH). Behaves like Mr Vali Karo - Turns a blind eye to the corruption at NDoH.

6. Mr Elari Kou - Senior Procurement Officer Medical Supplies Procurement and Distribution (NDoH) and owner of JED Logistics Ltd. It is alleged that this officer owns a number of rental properties and cars in POM including having three (3) wives and frequents Australia in vacations.

7. Ms Jonila Kepas - currently is the Manager for Pharmaceutical Standards at NDoH. She and her husband own a company that is supplying laboratory supplies, equipment and chemicals to the NDoH. She is abusing her powers for her own gain. Isn't this conflict of interest?

8. The secretary (Name??) to Mr Elari Kou Senior Procurement Officer NDoH owns a security firm that is currently being contracted to provide security services at Area Medical Stores Madang. Isn't this conflict of interest? Is this to shut her from exposing her boss and others corruption dealings with medical supplies procurement at the NDoH?

After Mr Igo Baru left NDoH to be a Director of Boneo Pacific Pharmaceuticals Ltd, Me Vali Karo was then appointed in the position. Along the way, Mr Vali Karo was suspended for his negligence in turning a blind eye on the corruption involving medical supplies procurement and distribution but could not trace any dealings or thieving on his part. He was then recalled back to his former position.

Mr Pascoe Kase was then appointed as the Health Secretary during Michael Malabag time as the Minister for Health. Mr Pasco Kase was supported by AusAID for the position at all costs for reason(s) only known to the Government of Australia.

Mr Pascoe Kase appointed Loina Yafai, wife of former Deputy Secretary of Finance implicated in the Paul Paraka Saga. She has no experience in the pharmaceutical industry. How on earth was she offered the job? It is alleged that the connection was her husband. How lucky for a person who has no experience and yet holds an important position lucratively paid with a backlog of neglected works. It is public knowledge that she flies to Australia every Fridays and resumes work every Monday morning. Is this part of her employment contract allowances? How on earth did she manage to fly every week to Oz? Do up your mathematics.

No wonder all the procurements are staggering behind without giving any care on the urgency to patients need for quality, safe and affordable medicines.

Hence the people allegedly responsible for the prolonged nil stock of medicines and medical supplies are Mr Wilie Kilepa, Ms Loina Yafai/Wauwa Legu, Mr Vali Karo, Mr Paul Dopsie, Mr Pascoe Kase and LD Logistics Ltd.

LD Logistics Ltd was linked to the Department of Health by Mr Chris Tarur, the terminated Manager of Central Medical Stores POM. He is related to the owner of LD Logistics Ltd (Tolai blokes). He was terminated together with Mr Kenneth Kachau for corruption in the GoPNG medical supplies procurement and distribution process.

LD Logistics Ltd were the sponsors of former Madang MP Nixon Duban who is the right-hand man of former PMPO. The owner (Mr Francis Wagaia) of LD Logistics Ltd was seen frequenting Madang and staying at Madang Resort during the election (including re-elections) of Nixon Duban.

Even though LD Logistics Ltd were not performing why were Pascoe Kase and Paul Dopsie renewing their logistics contract? How can they be paid for not delivering medical supplies right to the health facilities and yet fully paid for their contractual obligations?

It is important to note that the current Health Minister Hon Elias Kapavore is the former CEO of Vanimo General Hospital. He once reported directly to Mr Pascoe Kase the current Secretary to NDoH. He is very well versed with the prolonged nil stock issues while serving as the CEO of Vanimo General Hospital. He was also one of the CEOs of public hospitals in PNG who were warned by the current health secretary not to speak to the media regarding the prolonged nil stock of medical supplies. So in essence, he is very well versed with the medical supplies situation faced by the public health system in PNG.

Now, will the good minister for Health take appropriate action(s) against the Department of Health and or allow Mr Pascoe Kase to go continue to overlook the minister as if he is still the CEO of Vanimo General Hospital? The ball is now in the Minister's court. He must refer to the publication on the BIGGEST SCAM NO 1 and now SCAM NO 2 in the PNG National Department of Health being exposed openly and is now public knowledge.

How long and low can the Minister for Health continue to defend the corrupt Secretary for Health and the failures of the senior public servants at the NDoH?


If he continues to defend the Secretary for Health, one can only assume he has some dealings with the Health Secretary while being the CEO of Vanimo General Hospital. Perhaps the next article will be to expose the irregularities in the awarding of contract(s) for the design and construction of the Admin Complex of Vanimo General Hospital.



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