Opposition blocks Specialty Hospital, $1.1B Amerindian fund

Apr 11, 2014 News

– Health Ministry grilled over prices paid for drugs

In the first of its promised cuts to this year’s National Budget, the Opposition yesterday voted against the Indian-funded US$18M Specialty Hospital and a $1.1B provision for the Amerindian Development Fund.

Amerindian Affairs Minister, Pauline Sukhai

The blocking of the $910M for the controversial hospital slated for Turkeyen, East Coast Demerara, and the $1.1B set aside for the Amerindian fund immediately sparked condemnation from the Government side, which said that the action has undermined the possibilities of talks with the Opposition refusing even at the last moment to say what its concerns are with respect to the budget.
Amerindian representatives in the National Assembly for the Opposition insisted, during a hasty press conference, that they want a clear plan from Government on how the fund is being spent, with Toshaos and villagers complaining that the monies are benefitting mainly handpicked representatives of the ruling People’s Progressive Party/Civic who collect $30,000 monthly and do virtually nothing.
An attempt for a possible resolution on the Specialty Hospital during a break failed, as no meeting was held.
Amendments to the National Budget have created great controversy, dividing the National Assembly in no uncertain terms. The matter went to court and earlier this year, there was a ruling that the National Assembly can only approve or disapprove the estimates. It will be up to the Finance Minister to amend those estimates.
On Wednesday, Speaker of the House, Raphael Trotman, proposed that a sub-committee be established that will consider any possible amendments.
Finance Minister, Dr. Ashni Singh, said yesterday that no notice was given to the Government side except for a late email which indicated that there were concerns over the Specialty Hospital, the Amerindian Development Fund (ADF) and an allocation of $413M for Community Policing.
The first of the estimates on the agenda for the afternoon was the $5.7B for the Georgetown Public Hospital Corporation (GPHC) with questions over the companies supplying drugs and medical supplies.
According to Health Minister, Dr. Bheri Ramsaran, the companies include New GPC, International Pharmaceutical Agency (IPA) and Pharmagen.

Health Minister, Dr. Bheri Ramsaran and GPHC’s CEO, Michael Khan

Present also in the National Assembly was GPHC’s Chief Executive Officer, Michael Khan. It was disclosed that Khan was earning $869,000 monthly while the Director of Medical and Professional Services was being paid $771,000.
There were also questions over how one ambulance could cost $8M while another allocation for $117M was for 12 ambulances.
Leader of the Opposition’s Alliance For Change, Khemraj Ramjattan, requested details of what percentage of the $1.8B set aside for drug supplies, the New GPC would be receiving in contracts. That company has been embroiled in accusations by the Opposition that it was being favoured in receiving contracts. New GPC is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo.
Ramjattan also wanted information as to what measures were in place to determine whether Guyana was receiving the best possible prices for drugs. Billions of dollars are being spent annually on procurement, with New GPC receiving the lion’s share in contracts.
When it came time to vote, both of the Opposition factions made it clear that they were not against development but wanted proper details of the spending.
The specialty hospital was part of the budget under the Health Ministry’s Regional and Clinical Services which totaled $1.35B. That entire allocation was voted against by the Opposition.

Amerindian Members of Parliament from the Opposition side during a press conference yesterday to defend the cutting of the $1.1B Amerindian Development Fund.

It affected capital funding for the construction and upgrading of health facilities, doctors’ quarters, purchases of ambulances and vehicles and of medical equipment.
Opposition Leader, David Granger, said that the door was opened for negotiations even at this stage with the possibility of the other allocations under the section being approved.
The total Health Ministry budget was for $10.3B.
Meanwhile, Amerindian Affairs Minister, Pauline Sukhai, denied that the $1.1B Amerindian Development Fund was a political ploy. She listed several villages which have been benefitting from training with at least two persons being trained in each sector for every village.
The $1.1B funding was not approved.
Members of Parliament from the Amerindian community, and sitting on the Opposition side, in defence, declared that their information was much different from Government’s.
During a press conference, the Parliamentarians said that the ministry failed to present any report that measures the impact of its Youth Apprenticeship and Entrepreneurial Programme (YAEP) on Amerindians. They wanted a review of the programme to ensure that the “large amount of money being sought is to be expended for serious educational and not political purposes.”
They accused the Ministry of choosing the Community Support Officers who generally do not seem in tune with the villages they are working with.
The MPs said that they have “decided not to support the use of the ADF funds for YAED without the assurance that the programme will be put on a sound, non-political, education foundation.”