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The rental of the storage bond fiasco

Aug 27, 2016 Letters

Dear Editor,
The nation continues to reel from the shock generated by the 12.5 million dollars per month rental of a storage bond at Sussex Street, Charlestown, Georgetown by the Ministry of Public Health for a fixed term of 3 years. It is already established that the security deposit of 25 million dollars paid by the Government was used by the landlord to purchase the property that an investment of $ 25,000,000 yields returns of $12.5 million per month and will yield $450 million in 3 years, makes this one of the most lucrative transactions ever done in the history of this country. Minister Dr. George Norton told the Committee of Supply that drugs and pharmaceuticals were already in the bond and that the bond satisfied the standard international requirements for such facilities. Within the hour of that disclosure, the press descended upon that facility and found carpenters still renovating and no drugs or pharmaceuticals were at the premise.
Another inaccuracy peddled by the Minister was that the Government was renting bond facilities from new GPC at a cost of 19 million per month. The landlord is Linden Holding Inc, whose principal shareholder is a known associate of the Administration. The Office of this company is located in a building owned by Minister Cathy Hughes. This contract was simply handed to the landlord in complete disregard and in violation of the Procurement Act. The nation was told that Cabinet examined, discussed and deliberated on this contract, but found nothing wrong with these alarming details and gave the contract its approval.
When the astonishing information regarding this rental contract were made public and the pressure begun to build, Cabinet made another egregious blunder. It appointed a sub-committee of Cabinet to investigate a decision of Cabinet. It is as if Cabinet fell into a state of comatose. It became oblivious to the principles of natural justice and the axiomatic conflict of interest and naked incest which permeate that decision. That this Committee is comprised of three lawyers only compounds the stench. Two decipherable recommendations have emanated from this impugned sub-committee: that Minister Norton must apologize; and the contract must be reviewed. Without the consent of the landlord, a review of the contract would be a futile exercise. It is already executed. It is a done deal. It can only be altered or amended with the consent of the parties.
Upon my written request, Minister Norton finally furnished a copy of the rental agreement to the National Assembly as promised over two weeks ago. It has generated even greater scandal. It is important that I highlight the following.
(i) The copy circulated is unsigned. I believe this is deliberate. They do not wish to disclose the signatories to this agreement.
(ii) The contract purports to be between Linden Holdings Inc. and “The Ministry of Public Health, a statutory body corporate”. The Ministry of Public Health is not a statutory body corporate. It is simply a department of government. Therefore, it has no legal personality and cannot enter into a contract in law.
(iii) The agreement binds the tenant “to use the Demised Premises for the purpose of a professional office”. Not a bond to store pharmaceuticals.
(iv) There is no provision in the Lease that speaks to any PAHO/WAHO or any standard requirements in relation to the storage of drugs.
(v) The contract was granted in violation of the Procurement Act and is unlawful.
The three lawyers who reviewed the contract either found none of the above objectionable or did not read the contract. In either situation, the incompetence is intolerable. No apology can fix this. This is not a blunder. This is negligence of a criminal degree. Nothing short of revocation shall suffice.
Anil Nandlall
Attorney-At-Law

Editor’s note: Because of length, the conclusion of this letter will be carried in tomorrow’s edition.

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