2010 $1.2B New GPC contract… Parliamentary committee to review system

Jan 08, 2013 News

The Public Accounts Committee (PAC), with its mandate to review the annual Auditor General (AG)’s Report and public accounts, is set to question the Ministry of Heath on the measures it used to award a $1.2B contract in 2010 to the medical supply company, New Guyana Pharmaceutical Corporation (New GPC) Inc.
Questions arose as the Auditor General, Deodat Sharma, stated in his report of 2010, that “a system of competitive bidding was not followed in the award of contracts to the New GPC totaling $1.252B.”
The Ministry of Health is considered to have violated section 26 and 27 of the Procurement Act.
The committee was supposed to have reviewed the Health Ministry’s 2010 spending as audited by the Auditor General, yesterday. However, time did not permit, and the review has been postponed to next Monday.
However, the Ministry, in its written response to the auditor’s findings, reiterated its continued position that awarding contracts for medical supplies requires more consideration than reasonable pricing.
The Ministry stated, “It must be noted that the procurement of drugs and medical supplies does not necessarily place all the criteria in price, but also on quantity, service and availability. As such, it is safe to say the New GPC Inc. has comprehensively met these criteria.”
Further, the Ministry stated that New GPC outshone the lower bidding company as it relates to the aforementioned requirements that the Ministry considers upon awarding contracts.
Also, the Ministry stated that it has corrected its method “as per the recommendation of the audit office.”
“The Ministry publicly advertised for prequalification of suppliers for medicines and medical supplies in adherence to section 26 and 27 of the Procurement Act. The expression of the interest for bids was opened on November 23, 2010. An evaluation was done and award made by the National Procurement and Tender Administration Board (NPTAB).”
Come next Monday, Ministry officials will be made to tell the PAC “what action was taken to ensure continued compliance with the tender procedures,” as suggested by the Auditor General, along with further questions that committee members will wish to have answered.

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2010 $1.2B New GPC contract… Parliamentary committee to review system

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