Procurement of drugs and pharmaceuticals… We want to level the playing field not get rid of New GPC – Governance Minister

Aug 06, 2015 News

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By Kiana Wilburg

While the Granger administration is adamant about leveling the playing field when it comes to the procurement of drugs and pharmaceuticals in Guyana, it does not see the immediate need to address the criteria which allow just one company, New GPC, to enjoy the lion’s share of such contracts.
Minister of Governance Raphael Trotman expressed to the media yesterday during a post-cabinet press briefing held at the Ministry of the Presidency that Government’s intention is not to get rid of New GPC but to ensure that all suitable drug suppliers can get an equal cut of the pie. In short, he alluded to his administration’s long spoken intention of bringing sole sourcing to an end.
Under the rule of the previous administration, the criteria for companies bidding for contracts to supply drugs and other pharmaceuticals were revised. This led to accusations that the People’s Progressive Party (PPP) was positioning New GPC, owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, best friend of former President Bharrat Jagdeo, to be the only company meeting the requirements.
Under the revised criteria, bidders had to demonstrate a gross annual turnover of US$5 million and net assets of US$2.5 million.
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, would also gain an edge.
Yesterday, Trotman was asked to comment on the status of the procurement guidelines and how they are being corrected to level the playing field. He told the media fraternity that this is under the active management of the Ministry of Finance.
“As you know there is no Public Procurement Commission (PPC) and it requires a two-thirds majority to be established. Government is ready to name its representatives and will push once we have a Public Accounts Committee (PAC) which is traditionally chaired by an opposition member,” Trotman explained.
The PAC has to nominate the five members of the Procurement Commission. The National Assembly by two-thirds majority has to ratify their appointments. The opposition is, however, yet to take its seats in the House, so that this process can take its course. As a result, the establishment of the Public Procurement Commission is stalled.
Considering that the New GPC is under review and the fact that a forensic audit has been launched into the supply of drugs and pharmaceuticals in Guyana thereby bringing the suppliers under the microscope, the country is essentially without a drug supplier.
Trotman was pressed again to say if government is going to wait until it is ready to award such contracts to revise the criteria.
He said, “While we don’t have a supplier, our supply of drugs is not in a state of emergency and we are looking at every possibility and every alternative. Our intention is not to get rid of or eradicate New GPC but to level the playing field. Minister of Health, Dr. George Norton recently told cabinet that he received a bill for the supply of drugs to the tune of $50M from a Caribbean company, so there does seem to be some activity regarding other suppliers that may not be making the news.”
Even after this, the Minister of Governance was reminded that New GPC supplies 80 percent of the drugs for the country, thereby underscoring the need for the review of the criteria. Trotman simply retorted that this was under review and will be dealt with soon.
While Government’s intention to establish a Procurement Commission is being stymied by the opposition which isn’t quite ready to take its seat in the opposition benches in the National Assembly, there have been recommendations for substitute provisions which government can put in place.
The Minister of Governance was grilled again on the said topic, this time as to why Cabinet has not pushed for an alternate plan in the interim.
Trotman said, “Let’s bear in mind, please, that elections were only held in May and we are now starting August. In other words, we aren’t at a critical period where our procurement issues have national effect, so we believe that based on what we see from the posturing of the opposition that we are likely to have an opposition in the Assembly quite shortly so that that the formal and legal process of identifying the commissioners for the commission can take place.”
He added, “The window is still open for us to go the approved, constitutional route of having the PAC appoint the Commission…We don’t see a need right now to introduce any kind of extra constitutional measures.”
Trotman said that while this is part of the APNU+AFC 100-day plan, it expected that the PPP would have accepted its place in the opposition camp and its role in the National Assembly so as to facilitate the establishment of the Commission by this time. But this is certainly not playing out as they had hoped.
Over the years, the coalition parties, when in opposition, had spoken against the award of billion-dollar drug contracts in favour of the New GPC. They also spoken about the manner in which the previous administration changed the laws to ensure that Ramroop’s company would be used for the sole sourcing of drugs.
When it served in the opposition, the current administration had lashed out at the PPP/C for granting billions of dollars worth in contracts to New GPC during the lead up to the May 11 National and Regional Elections.
On May 8, last, New GPC uplifted the entire billion-dollar cheque for a drug contract awarded to that company. That was the last working day before General and Regional Elections.
The payment arrangement was also contrary to all the country’s procurement procedures. Traditionally, 25 per cent of the contract is paid up front.
AFC Leader, Khemraj Ramjattan, had said that the situation surrounding the health contracts and New GPC was nothing but “kick-down-the door banditry.”
Foreign Affairs Minister, Carl Greenidge, had said that he found the actions of the previous Government in the lead up to the May 11 polls, to be evidence of how “evil, corrupt, greedy and ruthless” it could be.
Greenidge had said that the PPP/C has given so much to Dr. Ramroop by breaking the laws that it has made him a king in his country.
“Another critical point we need to pay attention to, and that is the fact, that Ramroop was given the opportunity to supply almost 85 percent of the country’s drugs for nearly 20 years. Considering the empire he has been able to build through the sole sourcing of drugs, we see clearly, too, for how long value for money in the health sector has been evaded.”
Greenidge had said that the control Jagdeo gave Ramroop over the health sector is not only unhealthy for the competitive market, but it also mars attempts at transparency and accountability.
The politician had reiterated that through the sole sourcing of drugs, “Jagdeo and his government did not only ruthlessly rob the nation, but invited his best friend to help to further corrupt the system and to rob the poor people at the same time.”

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