Health Ministry denies knowledge of New GPC’s drug supply status

Sep 13, 2014 News

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Despite the fact that Government’s Chief Spokesperson, Dr. Roger Luncheon, almost two months ago publicly

announced that the New Guyana Pharmaceutical Corporation (GPC) has been given the go ahead as the nation’s sole prequalified drug supplier, the Ministry of Health claims that it still has not been informed.
At least this is according to Leslie Cadogan, Permanent Secretary in the Ministry of Health, who surprisingly yesterday publicly stated that the Health Ministry has not been officially notified of any awards, as it relates to the procurement of drug and medical supplies.
He was at the time responding to a media report in another section of the media which highlighted the fact that the Health Ministry is still to inform the bidders as to the outcome of the pre-qualification evaluation, as is required by law.
According to Cadogan, “as soon as the Health Ministry is officially notified, both successful and unsuccessful bidder(s) will be informed.”
It is unclear why the National Procurement and Tender Administration Board is yet to advise the Ministry of Health as to the results of its evaluation since the matter has been cleared by Cabinet, dominated the spotlight in the public recently and is also subject to litigation.
Head of the Presidential Secretariat, Dr. Roger Luncheon, in July last announced that the tender board found that the new GPC was the only supplier that met all of the requirements as was set out in the revised criteria.
The 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.
In defending the decision at the time, Dr. Luncheon told media operatives that the decision to award the contract to the New GPC was not tantamount to sole sourcing.
He said that the Tender Board picked New GPC from among seven companies that applied to be pre-qualified.
“Our result was that there is only one company that satisfied those requirements as far as NPTAB was concerned, and that was brought to Cabinet,” Luncheon explained.
When asked if the criteria used to pre-qualify a company were not biased in favour of New GPC, Luncheon said, “The criterion is biased in favour of safety.”
At least one of the other bidders have since moved to the court to have the decision by the tender board be reversed, adding that the revised criteria set out by the Ministry was discriminatory.
Chief Executive Officer of International Pharmaceutical Corporation (IPA), Lloyd Singh, in his legal challenge to the tender board decision claims that the move by the Ministry was discriminatory of itself, or in its effect and decision.
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 orders 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 as null, void and of no legal effect.”
Singh wants the court to declare that the decision by the NPTAB, that the 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.
Singh further alleges that the renewed criteria by the Ministry came only after it would have extended public invitations for persons to apply to be prequalified.
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 had 50 or more employees, and warehousing capacity of 30,000 square feet in the city, will also gain an edge.
New GPC has been a feature in the Auditor General’s report over the years with several instances focused on multi-million-dollar deficiencies in the procurement and supply of drugs to Government. The purchase of drugs this year is expected to surpass US$25M.
The purchases have been a major source of contention between Government and the Opposition for years now because of the seeming close relationship between its main principal and the Administration.
Ansa McAl was the first to protest the decision by the tender board. That company had also lodged a formal complaint.

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