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Discontinued specialty hospital funds to help boost primary health care – Govt.

Jun 18, 2015 News

Primary health care is poised for some much needed financial attention. According to Minister in the Ministry of the Presidency, Joseph Harmon, Government is currently considering diverting funds that were allocated to the Specialty House project that was brought into being by the People’s Progressive Party/Civic (PPP/C).  “The current thinking of the administration is that, once the sums of monies are available it would prefer that the monies be spent in other areas that have to do with primary health care,” disclosed Harmon.
According to the Minister, Government has been directing keen attention to the Specialty Hospital project for which the former administration had secured funding, in the form of a loan from the Exim Bank of India. The project was being undertaken to the tune of some US$18 million.  Already close to US$4 million has been expended on certain preliminary issues in relation to the project, according to Harmon.
The project is one that was being undertaken by contracting firm Surendra Engineering Company Limited. “As is common knowledge that company ran into some problems with the previous Government and as such, the Ministry of Health decided that they were going to terminate the contract with Surendra Engineering,” recounted Harmon as he pointed out that basically, the former Government was forced to take the company to court for what it considered to be fraud with regards to monies spent.
According to Harmon, Cabinet has been looking at its relationship with the Exim Bank of India as it relates to the spending of the balance of the project sum which currently amounts to US$14 million. He pointed out too that Cabinet has mandated Minister of Finance, Mr Winston Jordan, to enter into and continue discussions that had started with the Bank with a view of having a comprehensive review of the status of the project. The review, Harmon said, is being undertaken by a consultancy group. And it is the expectation of Government that based on recommendations of that group that Government will decide on a way forward.
The PPP/C Government last year admitted that Surendra Engineering Company Limited committed a criminal act; in the process leaving Guyana with an unsecured US$4M since there is no bond in place as a guarantee.
This was confirmed by then Head of the Presidential Secretariat, Dr. Roger Luncheon, who disclosed that the company’s problems came mainly through delays in timelines, an inability to properly account for public funds as well as, issuing a forged bond document purportedly emanating from Trinidad and Tobago with the blessings of the Trinidad Central Bank.
The document turned out to be forged, according to Dr. Luncheon, who sought then to credit the local consultants VIKAB Engineering Consultants with bringing the skulduggery to light.
According to him the issues related to Surendra had engaged the Cabinet Council of Ministers for several weeks. Surendra Engineering Company Limited was contracted to design and build the Government’s Specialty Hospital at Turkeyen, East Coast Demerara.
That hospital was to be constructed at a cost of US$18M. This was part of the wider goal which would have seen some US$150M being used to build the infrastructure as well as outfit and install the necessary equipment.
Works ceased at the worksite and according to Dr. Luncheon leading up to this stoppage was a number of differences between the Ministry of Health which was effectively the client and Surendra Engineering.
He said that there were numerous engagements between the stakeholders but to no avail, eventually leading to the decision to terminate the contract.

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