Health Ministry still in dark over Ramroop’s New GPC contract

Sep 25, 2014 News

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…Cabinet still to communicate ‘no objection’ to Tender Board-Source 

The Ministry of Health is still to be officially informed that New Guyana Pharmaceutical Corporation (GPC) has been selected as the sole locally prequalified supplier of drugs for the Guyana Government.

This publication understands that Cabinet is yet to formally notify the National Procurement and Tender Administration Board of its non objection in writing.
A senior official at the Tender Board yesterday explained that the Board would only inform procuring entities of its decision when it is informed in writing by Cabinet.
Upon the formal notification by Cabinet to the tender board, it was explained that the procuring entity would be informed of the tender board’s decision “as soon as possible.”
The Ministry of Health is still to be formally notified of the decision by tender board in favour of New GPC despite the fact that Head of the Presidential Secretariat, Dr Roger Luncheon, making the announcement just over two months ago.
Earlier this month, Leslie Cadogan, Permanent Secretary in the Ministry of Health, publicly stated that the Health Ministry had 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.”
Dr. Roger Luncheon, last July, announced that the tender board found that the new GPC was the only supplier that met all of the requirements 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.
This decision was met with staunch protestation by other suppliers and other stakeholders.
International Pharmaceutical Agency (IPA), headed by Lloyd Singh has also approached the courts to quash the decision announced by Dr Luncheon.
Chief Executive Officer of 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 argued 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, violate 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.

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