Latest update January 30th, 2025 5:16 AM
Government to scrap prequalification of drug suppliers
By Abena Rockcliffe-Campbell
Minister of Health, Volda Lawrence, has promised an end to the controversial system of prequalifying drug suppliers. She made this promise to the Georgetown Chamber of Commerce and Industry (GCCI). 
At a recent press conference, GCCI President, Deodat Indar, said that the Chamber held a meeting with Lawrence at which concerns were expressed about a number of issues affecting members of the Chamber.
Indar said, “We had constructive discussions with her and we will have quarterly meetings to check on the progress on the items discussed.”
He said that public procurement practices for health care supplies were highlighted as a major concern of the GCCI. “She explained that the system is being redesigned to accommodate everyone. She mentioned that things like prequalification of contractors in that sector will no longer be used and everyone will have a fair chance to bid for contracts on a clean slate,” said Indar.
Also discussed were issues surrounding the food and drug importation and the Tobacco Control Bill which was laid in the National Assembly?
Speaking about food and drug importation, the Chamber told Lawrence that it needs to be addressed.
“We have members complaining that they have been getting a hard time bringing goods into the country resulting in spoilage of imports and we have addressed the issues with the Director of Food and Drug as well as the Minister Volda Lawrence.”
GCCI Junior Vice-President, Timothy Tucker, said that Lawrence asked for recommendations for impending changes to the Food and Drug Act
GCCI’s next meeting with Lawrence is scheduled for July. The Chamber said that it will be keen to note the progress of the things discussed.
GCCI is not the only body that had issues with prequalification. This is a matter that can be dated back to the reign of former President Bharrat Jagdeo.
The APNU and the AFC, while in opposition, kicked against the prequalification process.
The parties said that the pre-qualification requirements for the supply of drugs were changed to an “unreasonable” extent by former President Bharrat Jagdeo.
The changes were so tailored to favour only one person or company to qualify for the supply of pharmaceuticals. That company is the New Guyana Pharmaceutical Company (GPC).
Under the revised criteria for the pre-qualification of suppliers of drugs and medical supplies, the bidders must demonstrate a gross turnover of $1B (US$5M) and net assets of $500M (US$2.5M).
One of Jagdeo’s criteria is that maximum score will be awarded to applicants who have paid $50M in corporate taxes annually. The company with 50 or more employees, and warehousing capacity of 30,000 square feet in the city, will also gain an edge.
New GPC qualified as the only supplier, locally, with its own bond of that size.
According to the revised prequalification criteria, maximum points will also be awarded in the evaluation process to the applicants who have been supplying Government for more than seven years without any negative reports.
Further, 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 to Government.
However, the Auditor General’s concerns were ignored.
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