ANSA McAL lauds return of level playing field in procurement of drugs

Mar 13, 2017 News

By: Kiana Wilburg

ANSA McAL Trading Limited has lauded the return of a level playing field in the procurement of drugs and other pharmaceuticals after being shut out from the system for several years.
This was because for over 20 years, one company, New GPC, was the beneficiary of billions worth in contracts through sole sourcing. New GPC is owed by Ranjisinghi “Bobby” Ramroop, a friend of former President and now Opposition Leader, Bharrat Jagdeo.
Additionally, ANSA McAL said that it is extremely concerned that it was being linked to allegations of sole sourcing of emergency pharmaceuticals.
“ANSA McAL and three other companies were asked to quote for emergency supplies after we learned at a public meeting that an original tender had been compromised. We gave quotations for 300 items and were awarded 116, which we had to procure within 14 days,” the company noted.
“Needless to say, we were pleased to win part of this order and that we have returned to a level playing field having been shut out…for many, many years.”
Furthermore, the collusion between moles in the public health system and a few crooked suppliers of pharmaceuticals is what led to the Minister of Public Health, Volda Lawrence, taking a controversial route in the recent procurement of emergency pharmaceuticals for the Georgetown Public Hospital Corporation (GPHC).
The minister made this statement to the press on Saturday, in an effort to correct misleading comments in some sections in the media.
The misguided comments, she said, were in relation to certain documents which were leaked to the media, giving the false impression that the hospital tried to procure drugs from ANSA McAL Trading Limited through sole sourcing.
Lawrence stressed, however, that ANSA McAL was among four companies from which these emergency supplies were procured. The other companies were New GPC, Health 2000 and Chirosyn Discovery.

Public Health Minister, Volda Lawrence

Owner of NEW GPC, Ranjisinghi “Bobby” Ramroop

The Minister of Public Health said that other companies were not a part of this process due to ongoing investigations into their late/or non-delivery of critical drugs which they were contracted to procure for GPHC during 2016.
She said that some of these pharmaceuticals were overdue by as much as six months, which exacerbated the drug shortage at the hospital.
She explained that moves were made to fast track the procurement of these pharmaceuticals to minimise the negative effects on patients due to the shortage of some critical drugs.
“This influenced the decision to seek the green light from the National Procurement and Tender Administration Board (NPTAB) for ANSA McAL to supply drugs and pharmaceuticals to the tune of some $605M.”
Lawrence explained that ANSA McAL is one of only two companies in Guyana that can provide the cold chain storage necessary to maintain the integrity of a wide range of pharmaceuticals that are critical in the health care sector, in Guyana.
“ANSA McAL not only air freighted the drugs (this helped spike the cost to import the items) for the public health sector, but also donated four refrigerators to GPHC to store the emergency supplies at the internationally acceptable temperature of 2 to 8 Degrees Celsius. No other company in the history of the institution has provided cold storage facilities at the hospital even though, at least one of them (NEW GPC) was the sole supplier of pharmaceuticals to the institution for over 20 years.”
Lawrence said that all pharmaceuticals for the entire nation was sole-sourced from that company for billions of tax-payers’ dollars. During that period, she said that GPHC used icepacks to store these sensitive drugs at the facility, because the main refrigerator was in poor condition and unable to maintain the correct temperature for these drugs endangering their efficacy, potency and integrity.
Lawrence stressed that she was unwilling to jeopardise the sector and patients’ lives and took what may appear to be the now-controversial route.
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, 2015, New GPC uplifted a 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 percent of the contract is paid up front.
Minister of Public Security, 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 the actions of the previous Government in the lead up to the May 11 polls, was evidence of how “evil, corrupt, greedy and ruthless” it can 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 this 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.”
It is estimated that over the past seven years more than US$200 million was spent on drug purchases, with the lion’s share going to New GPC.
Greenidge had said that the control Jagdeo gave Ramroop over the health sector was not only unhealthy for the competitive market, but it also marred 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 further corrupt the system and to rob the poor people at the same time.”
New GPC has been a feature in the Auditor General’s report over the years with several instances focused on multi-million-dollar deficiencies in the procurement and supply of drugs under the previous administration.