Latest update January 31st, 2025 7:15 AM
Jan 13, 2010 News
$300M payment to New GPC…
By Leonard Gildarie
The Opposition has asked for names of bidders following revelations that $300M in payments were made in December to the New GPC Inc. for the supply of drugs.
During questioning by the People’s National Congress Reform (PNCR) and Alliance For Change (AFC) on Monday in the National Assembly, Minister of Health, Dr. Leslie Ramsammy, committed to provide the information in the sitting.
On Monday, the National Assembly debated two Financial Papers requesting the National Assembly to approve $8B in additional expenditure for the period December 8-December 31, 2009. The additional sums were approved in the absence of the Opposition parties.
According to the Financial Paper Number 5/2009 under the Schedule of Supplementary Provision on Current and Capital Estimates, the Ministry of Health wanted approval for $473M already advanced to them from the Contingencies Fund to meet additional expenditure for the procurement of drugs and medical supplies.
ADVANCE OF $40M
In response to intense questioning from PNCR Parliamentarian, Winston Murray, about a part of the advance of $40M, Dr Ramsammy disclosed that it was used for payments in December to several local and international companies including New GPC and the International Pharmaceutical Agency (IPA).
The minister, replying to the process of awarding the contracts, said that it was done in both open and selective tendering processes which were approved by Cabinet.
However, an incensed Murray had issues with that. The PNCR’s Shadow Finance Minister wanted to know if the Minister was aware that Cabinet does not have the authority to override the law since any position taken of expressing a no-objection to a selective tendering is in violation of the law.
The Minister said that the Tender Board had recommended approval for the contracts to Cabinet.
Last year, during the 2009 Budget debate, Murray had clashed with the Health Minister after it was revealed that several payments to the tune of millions were made to New GPC for the supply of drugs without proper procedures of procurement.
According to the Parliamentarian, he had requested copies of a letter from National Procurement and Tender Board, which granted the Ministry a waiver to purchase directly from the New GPC.
On Monday, Murray said that almost a year later, he is still awaiting the document.
However, the Minister said he has given a copy of the document to the Public Accounts Committee, which prompted Murray to ask the Deputy Speaker of the House, Clarissa Riehl, whether it should not be considered disrespect that Dr. Ramsammy had committed in the National Assembly to provide the document.
The clash of the two officials continued after the Minister pointed out that Murray had never visited his office to uplift a copy of the subject waiver.
However, Murray would have none of it. “Is the Honorable Minister aware that my place of business so far as this nation’s business is concerned is the National Assembly of Guyana and not the Minister’s office.”
The Minister promised to have the documents pertaining to the waivers available for the next sitting.
ADDITIONAL $433M
Meanwhile, out of the additional $433M that was requested for drugs, some $300M was paid in December to New GPC.
In response to questions of AFC Parliamentarian, Khemraj Ramjattan, Minister Ramsammy, revealed that the monies were paid to the Pan American Health Organisation (PAHO), through selective tendering approved by the Tender Board; to the New GPC under open, international tenders; and to the New GPC and PAHO under selective tendering.
This prompted Murray to request names of the other businesses, which placed, bids for the contracts awarded for the amounts.
The Minister, who committed to have the information available by the next sitting of the National Assembly, also explained that the purchase of drugs is normal every year and would allow for the Ministry to have supplies until April.
In addition, with the increase of services, the Ministry has to adjust for this. The supplies were ordered in November and paid for in December.
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