Parliament Report Blames System Failure for PNG Drug Shortages

 Papua New Guinea Prime Minister James Marape has stepped in to address chronic medicine shortages, placing the Health Department and all Provincial Health Authorities on notice as hospitals and aid posts continue to run out of drugs.

The intervention comes despite a record K500 million allocation for medicinal products in the 2026 National Budget, the largest in the country’s history, raising concerns about how medicines are being managed and delivered.

 Papua New Guinea Prime Minister James Marape

Mr Marape said the shortages were not caused by a lack of funding but by a disjointed distribution system and weak management at national and provincial levels.

His assessment aligns with findings from a 2020 inquiry by the Permanent Parliamentary Committee on Public Accounts, which found that the Health Department failed to adequately manage logistics and distribution.

The committee stated that the department failed in its role as custodian of medicine supply, procurement and distribution, allowing systemic problems to persist.

One of the key weaknesses identified was last-mile delivery, described as the weakest link in the supply chain between area medical stores and clinics.

The inquiry warned that this gap created high risks of theft, damage due to poor handling and storage, and loss of medicines before they reached patients, particularly in remote areas.

Transport difficulties were also cited, with the report noting that even when medicines arrive in the country, logistical challenges often prevent them from reaching health facilities.

Financial mismanagement was another contributing factor. The inquiry found that large backlogs of unpaid bills had accumulated, discouraging suppliers from delivering medicines on time.

The Department of Health was found to owe K73 million to a single contractor, including K40 million outstanding since 2017.

The report also raised concerns about governance, pointing to a risk of corruption and a lack of transparency within the Medicine Supplies and Distribution Procurement Branch.

It found that public tenders for medical supplies were slow and poorly planned, with some contracts taking nearly a year to be awarded.

Mr Marape said his intervention would focus on clearing approval delays and rigid rules that have stalled the flow of medicines.

Although each of the 22 Provincial Health Authorities has received at least K10 million annually over the past four years, the inquiry found that many health workers lacked training in inventory management, leading clinics to order medicines based on estimates.

“Transparency is demanded from the government because the system failed to create a transparent environment,” the report stated.