More questions surface over criteria used to pick New GPC as drug supplier

Sep 02, 2014 News

IPA’s Lloyd Singh

The New Guyana Pharmaceutical Corporation (GPC) was recently adjudged the sole prequalified drug supplier for the Ministry of Health (MOH) and the Georgetown Public Hospital Corporation (GPHC), but the company is in murky waters with at least two of the revised criteria used.

One of the criteria refers to legal proceedings against the drug supplier that could lead to disqualification.

It asks, “Are there litigation issues that could potentially affect the solvency of the company and or conflicts with personnel working at the MOH/GPHC and is the company’s facilities and stocks adequately insured?”

While the New GPC’s insurance is not in question, the company is involved in a number of lawsuits that could potentially hurt it financially.

New GPC has taken Kaieteur News, its Publisher Glenn Lall as well as its Editor-in-Chief to court on numerous occasions both locally and in New York, all of which are still pending.

Another of the revised criteria used by the National Procurement and Tender Administration Board; seeks to ascertain if by default, inability or refusal, the company’s contractual obligations have not been met in the past.

New GPC has been cited in the Auditor General’s report over the years as it relates to late delivery of drugs on numerous occasions.

The Audit Office in some cases has been unable to ascertain whether drugs to the tune of millions were ever delivered.

At least two companies, International Pharmaceutical Agency (IPA) and Ansa McAl, protested the decision by the tender board and both claimed they met all of the requirements to be successfully chosen, which has now led to stakeholders calling for a review of the decision.

IPA has taken it one step further and has moved to the court to have the decision to appoint New GPC as the sole pre-qualified supplier, quashed.

Lloyd Singh, the Chief Executive Officer of IPA, last week filed a motion in the court against the Attorney General.

Singh in his affidavit, claims that the revised criteria which came even after the Ministry of Health would have advertised for pre-qualified suppliers, was discriminatory of itself, or in its effect and decision.

New GPC’s boss, Dr. Ranjisinghi ‘Bobby’ Ramroop

He further argues that the decision by the Ministry was unconstitutional, in that it violated Article 149 and as such, has asked that the court order the decision that New GPC be the sole prequalified supplier of drugs and medical supplies, null and void.
Singh’s petition is also seeking, “a declaration that the revised evaluation criteria for prequalification for the supply and delivery of pharmaceutical drugs and medical supplies for the period 2014-2016, are so heavily and obviously weighted in favour of a particular local supplier of pharmaceutical drugs and medical supplies to the government, that it renders the prequalification process unfair and unreasonable and deprives the applicant (IPA) of equality before the law or equal protection and benefit of the law and of the full and equal enjoyments of all rights and freedoms in contravention of Article 149 (D) of the Constitution is null, void and of no legal effect.”
Singh wants the court to declare that the decision by the NPTAB, that IPA did not satisfy the requirements, is unreasonable, unconstitutional, unlawful, null, void and of no legal effect.
According to the court documents filed by IPA, the company is looking to have the court declare that the revised criteria set out by the Ministry, violates the constitution and as such has no legal effect.
He is also seeking a conservatory order suspending or staying the decision by the NPTAB, that the New GPC is the only prequalified supplier to Government over the next three years.
Under the contentious revised criteria, bidders had to demonstrate a gross annual turnover of US$5M and net assets of US$2.5M.
Another criterion was that maximum score was to be awarded to applicants who would have paid $50M in Corporate taxes, annually.
Additionally, the company that has 50 or more employees, and warehousing capacity of 30,000 square feet in the city, will also gain an edge.
New GPC is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop who happens to be the best friend of former President, Bharrat Jagdeo.
That company has been supplying the bulk of the drugs to Government for the past 15 years, ever since it was acquired by Ramroop in 1999.