Procurement procedures not followed in insurance deal for ministers – Ramsammy

Aug 25, 2017 News

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The administration has reportedly entered a deal with an insurance company for health

coverage but there is no evidence that proper procurement procedures were followed.
The hefty insurance package, the first of its kind to reduce pressure on taxpayers, is reportedly costing Guyana almost $40M, but did not publicly go out to tender.
The issue is now being raised by former Agriculture Minister, Dr. Leslie Ramsammy.
He was also a former Health Minister also under previous administrations of the People’s Progressive Party/Civic.
According to Ramsammy yesterday, sometime earlier this year, the coalition A Partnership For National Unity + Alliance For Change (APNU+AFC) government signed an agreement with a regional insurance company which has opened offices here.
The deal was struck after an announcement by Minister of State, Joseph Harmon, in June that Government is moving to secure insurance for ministers and senior officials.
A number of government officials, including ministers had sought treatment abroad, but it is by no means cheap.
Ramsammy, naming the company, which is headquartered in a neighbouring country, claimed that the agreement is worth just over $38M annually and will earn about $155M by 2020, for the company.
“It is the first time ever that Ministers will have health coverage which I assume will be sought outside the country. It is a transaction that the government has entered into secretly,” Ramsammy said in a statement.
“There was no advertisement, no indication that they were interested in obtaining health insurance for ministers and their families. I am not aware that any discussion occurred with any of the insurance companies based in Guyana.”
The former Health Minister made it clear that he is not opposed to the Government covering costs of medical care for its ministers by obtaining health insurance coverage.
“But it is important that such transactions be in the public domain. Earlier this year, Minister (Joseph) Harmon insisted that government pays no bills for ministers’ foreign health care. This was not the truth. It was a deliberate misinformation.”

Ramsammy claims that he has information that ministers have traveled to Ireland, Cuba, Canada, USA and the Caribbean and these trips were paid for by the Ministry of Public Health.
“The Auditor General must take note of this. I am confident that on examination the Auditor General will discover that these costs were met by the Ministry of Public Health and or by the Ministry of Finance.”

ANOTHER BENEFIT
Ramsammy wondered whether the insurance company will now refund the Government.
“We note that this is another benefit for government ministers and the public needs to know. I am certain no one minds the additional cost to cover health benefits of ministers. But it is a benefit that should be in the public domain.”
Ramsammy pointed out that ministers benefitted from a large salary increase of “up to 100%” almost immediately upon assuming office in May 2015.
“They benefitted from a further increase in 2016 and yet another in 2017. They also benefitted from increase allowances, particularly for international trips. Moreover, the telephone and entertainment bills have skyrocketed, with many of the ministers and their families dining out at expensive hangout places, like the Marriott. The public has a right to know.”
Ramsammy noted that when the Government “hides” or withholds information from people, it is often because its members know it is something that will irritate people and that people will have a problem with.
“Any move to implement an action in secret is chaperoned by sinister motives. The APNU+AFC government has earned a terrible reputation for its secrecy, non-transparency and non-accountability. This latest secret deal is another of the non-accountability and non-transparency that now appears to be the new standard for government.”
The former minister reminded that APNU+AFC promised total transparency and accountability and zero-tolerance for corruption.
“It rode on this platform during the election campaign. Its manifesto is densely populated with promises to be accountable.”
The former parliamentarian insisted that this new deal with the insurance company is a direct repudiation of all the promises to be accountable and transparent.
“It is an absolute betrayal of the people who decided to give APNU+AFC a chance. They have squandered their chance and people will not forget the betrayal.”

NO BURDEN
In June, Minister Harmon said that recent cases of Government ministers seeking treatment as far away as Ireland have not burdened the treasury.
Responding to questions about permission being granted to a minister to fly overseas and the bill being around US$16,000, Harmon said that indeed cases have come up.
He disclosed that negotiations are underway that would see medical insurance coverage for senior officials.
Defending why a minister would want to travel as far away as Ireland, in Europe, the minister pointed out that some persons may opt to get the best possible medical care if they are sick.
In any case, he said, the bill was footed by the ministers. He did not name the ministers.
The medical expenses will eventually be taken up by the insurance when it kicks in, he said.
The issue of medical bills being footed by the state has been a galling one in the past.
Normal citizens have complained of being granted a fraction of what they need for emergency attention. The process has always been a tough one to access the funds from the state.
However, a softer view has been taken of government officials who fell ill and in some cases of Opposition members.
Previous governments have paid for treatment of their members to the tune of millions.

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