Cabinet mulls shortening lease for controversial drug bond

Sep 09, 2016 News

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– Starts search for another facility

After facing weeks of grueling criticisms from various anticorruption advocates, Cabinet members

went back to the drawing board and unanimously decided that it is in the nation’s best interest to explore the possibility of shortening the lease for the controversial Sussex Street Bond contract.
In a statement to the media yesterday, Cabinet said that it was recently engaged in full and thorough discussions on the issue of the storage of government pharmaceuticals at Sussex Street facility which is owned by Lawrence Singh of Linden Holdings Inc.
Cabinet concluded that the arrangement was “undoubtedly undesirable” and considered the options and recommendations in the report of its Sub-Committee which was tasked with reviewing the decision of the Ministry of Public Health to lease the Sussex Street facility.
The three-man committee consisted of Minister of State Joseph Harmon, Natural Resources Minister Raphael Trotman and Prime Minister Moses Nagamootoo.
Specifically, Cabinet said that it explored a range of options including shortening the lease period for the rental of the Sussex Street facility while expediting the search for another facility. Government said that it also agrees to secure its own pharmaceuticals storage facility and is inspecting suitable sites.
Cabinet also stated that the options of purchasing, constructing or leasing will also be explored. It noted however, that the conditions for the storage facility to be located within proximity of the Georgetown port and be easily accessible, remain applicable.
Though it has, out of necessity, taken some time to arrive at these decisions, Cabinet said that it is satisfied that significant advances have been made on this matter and when the full menu of actions is completed, the best arrangement, in the interest of the people of Guyana, will be concluded.
Cabinet noted that the Minister of Public Health, Dr. George Norton has taken responsibility for the embarrassing situation and has publicly expressed regrets over the controversy that the rental of the Sussex Street bond has caused. The Government also recommitted itself to managing the affairs of the state in a transparent and accountable manner and to respect public

opinion at all times.
Cabinet also pledged to be vigilant with regard to all contracts and arrangements, and gave assurances that efforts will continue to strengthen the delivery of health care services which, for too long, “have been held hostage by close friends and cronies of the previous administration”.
The body of high level ministers also acknowledged the frank expression of views by a wide cross section of the Guyanese society, which it said it “respects as vital to true participatory and inclusionary democracy”.
Prime Minister Moses Nagamootoo had said that the possibility of a fire and the issue of traffic congestion were just two of the many reasons considered for embracing the Sussex Street contract.
He had also stated that committee members who visited the Sussex Street bond were satisfied that it was suitable for use as provided for under the contract. He said that the members recommended that the bond be used until the Government is able to build an alternative facility.
“We are not justifying in a long-term sense that this is a facility that has long-term viability. We are saying use it because of the necessity that has emerged for a period by which time a new bond would be acquired.”
The Prime Minister had said that when the bond proposal came to Cabinet initially, the issue of traffic congestion affecting the access to medical supplies at the Diamond facility was not raised. He had said that it might be used as a rationalization for the continued use of the Sussex Street bond.
Nagamootoo said what was advanced was the necessity of a new site , consequent upon the demand of the New GPC for Government to either pay a rent for the facilities or take its drugs elsewhere.
Nagamootoo said that when Government made it clear that the New GPC was not going to be enjoying sole sourced contracts anymore and that “an era of competitiveness” is what is going to take over, “we were basically told to take our drugs and get lost.”
Nagamootoo was then asked if this was the case, then why not store the drugs at the Diamond facility which, according to an international report, has the capacity to store all of the nation’s drugs and even more.
The Prime Minister said however that he could not comment on this.
Nagamootoo explained that he did not visit the facility. He made it clear that it was Trotman who visited the facility and was the one chairing the committee. The Prime Minister emphasized that he was just a member of the team.
“When the team visited, they reported that the Diamond facility was encumbered and that it couldn’t accommodate the additional stocks. But I have since seen another report in the newspaper saying that the bond has space to accommodate 2,300 pallets and the bond was only utilizing under 1,600. If that is the case, then in spite of the contract being signed, we should not rule out a forensic scrutiny at Diamond facility…I would not rule out reassessment of the facility at Diamond.”
Nagamootoo was also asked why the committee did not address the fact that they gave a contract to someone who is inexperienced in the storage of drugs and pharmaceuticals. He had stated that Government is not renting the contractor but the facility.

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