APNU questions arrangement with New GPC

Apr 03, 2014 News

…Health Minister mum in his presentation

Shadow Minister of Health, Dr George Norton, yesterday blasted Government’s drug purchasing arrangements which have positioned one company, over which there are a number of burning questions, with an unfair advantage over the rest of suppliers.
While he did not name the company in his presentation, he was referring to the New Guyana Pharmaceutical

Dr. George Norton

Corporation (GPC), owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, which since 2005 has become the supplier of 75 per cent of drugs to the Government.
Dr. Norton was speaking to the 2014 Budgetary debates. He reminded the House that as far back as 2005, the late Winston Murray, was making repeated calls to the Government to purchase drugs and medical supplies with the procedures established by the tender board and to stop the use of a Cabinet Order.
According to the Minister, there are burning questions about what Government pays for its drugs as well as the untimely delivery often leading to shortages in the system.
He pointed to a recent headline which, he said, “screamed; Government pays $18,000 for $2000 pressure tablets.”
“What is apposite to note is that this company and the GPHC have defended the purchases saying that the prices were ok.”
According to Dr. Norton, last year new instructions were issued on how to shortlist the prequalified suppliers but the guidelines will certainly give the company and unfair advantage.
“We are saying that this process should be ceased forthwith and revisited with all the potential suppliers, to create as much of a level playing field as possible.”
This, he said, must be done in the background of the fact that the Auditor General’s report for over the years continue to reveal a number of unsatisfactory features in respect to the performance of the Company.
He used as an example, the 2012 Auditor General’s Report, which stated that as of September that year medical supplies in excess of $58M had not been delivered to the Hospital and there was no bank guarantee in place.
Dr. Norton said that there was a similar instance with the Ministry and the company, where in April of that year, medical supplies valued some $164.4M had not been delivered and there was no bank guarantee in place.
He noted that over the years this has been a trend and despite the shortcomings no action was taken against the company.
“Why should the Ministry of Health persist with a supplier that is failing to comply with the recommended delivery schedule, unless there is some hidden agenda?” questioned Dr. Norton.
According to Dr. Norton, the Ministry would tender for drugs and medical supplies for the entire year from this company. The company is then permitted to deliver in tranches despite the fact that the Ministry has adequate storage facilities
“Is this supplier being allowed to do what he so chooses? It is definitely not in the public’s best interest to have one supplier having a virtual monopoly in the supply of drugs and medical supplies,” according to Dr. Norton.

Bheri Ramsaran

The APNU Shadow Health Minister told the House, too, that as it relates to the dumping of millions of dollars of expired drugs every year, “APNU calls the President to put in place an independent Commission of Inquiry into this fiasco of expired drugs with full investigative powers.
He told the House that last year, more than $273M in expired drugs was dumped between the Ministry of Health and the Georgetown Public Hospital Corporation.
Dr. Norton further challenged the Minister to provide an acceptable explanation for the expired drugs and the dumping in Agricola outside of the accepted protocol by the Food and Drug Department.
Health Minister Dr. Bheri Ramsaran said that on each occasion the issue of expired drugs is raised in the media his Permanent Secretary and team have always been able to give explanations.
According to Dr. Ramsaran, there are sometimes large gift items that come to Guyana with short shelf lives.
He said, too, that sometimes what happens is that many of the items dumped had been accumulated over the years.
The Minister was adamant that what happened in Agricola was not the dumping of drugs but rather the workers were separating expired drugs so that they can be stored at a room in the building before being destroyed.
Dr. Ramsaran at no point in time during his presentation, dealt with the drug purchases and the concerns raised over the relationship between the Ministry of Health and New GPC.