Sole sourcing by GPHC, rentals for Ministers…Finance Minister, Opposition clash on matters of accountability

Nov 20, 2017 News

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Finance Minister, Winston Jordan and Members of the political Opposition recently squared off on matters which were rooted in the principle of transparency and accountability.
On Friday last, the Opposition grilled Jordan on spending by the Georgetown Public Hospital Corporation (GPHC) for emergency drugs. He was also quizzed on the Government’s approach towards rental fees for the accommodation of Ministers.
GPHC EMERGENCY DRUGS
Earlier this year, the Georgetown Public Hospital Corporation shortlisted several companies to supply various quantities of emergency pharmaceuticals. One of those companies was Ansa McAl. It won a tender to supply drugs and pharmaceuticals to the tune of $605M.
Since this revelation, the political opposition has been adamant that the GPHC violated the procurement rules as it granted payments to Ansa McAl for the drugs without the permission of the National Procurement and Tender Administration Board (NPTAB).
Opposition’s Chief Whip, Gail Teixeira called on the Finance Minister to explain how the Georgetown Public Hospital was able to make payments to Ansa McAl Trading Limited, even though it was in violation of the Procurement Act.
She also asked the Minister to state what action, if any, has been taken by him or the National Procurement and Tender Administration Board with regard to the matter.
The Finance Minister responded that there was no involvement of NPTAB up to the time GPHC chose to involve Ansa McAL to supply the requested drugs and medical supplies. He emphasized that NPTAB only received a request regarding single sourcing on March 1, last, by which time Ansa McAL was already engaged. Jordan asserted that NPTAB never gave subsequent covering approval for this engagement. The Finance Minister said, too, that he could not say on what authority GPHC was able to make payments.
The Finance Minister noted, however, that the matter is currently engaging the attention of Auditor General, Deodat Sharma and the Public Procurement Commission.
He said that any subsequent action by the relevant Minister as well as NPTAB would be based on the findings and recommendations of those two bodies.

But Teixeira said that GPHC violated the nation’s procurement laws by releasing payment to Ansa McAL. On this premise, she pressed Jordan to say how the Ministry could be unaware that expenditure of that quantum could be released.
The Finance Minister stressed that GPHC is an autonomous body which receives a subvention via the Consolidated Fund and these are to be spent in accordance with the nation’s procurement rules. The economist reiterated that he was unable to say at that time, how GPHC was able to spend money without the necessary approval. He told the National Assembly that he would do some research on the matter.
At this point, the political Opposition expressed grave disappointment that the Minister could not directly answer its questions.
RENTAL OF RESIDENCES
Rental for residences for Ministers has been a topical issue for the political opposition in recent months. In June last, for example, Opposition Member, Anil Nandlall wrote Clerk of the National Assembly, Sherlock Isaacs asking him to explain why the Parliament was paying the accommodation fees for junior Minister, Simona Broomes.
Isaacs had stated that this was provided for under the law which says that the Prime Minister, Attorney General and senior ministers of the government are entitled to rent free quarters. He had even stated that the PPP enjoyed the same benefit in the past. The only difference was that instead of Parliament, Office of the President, now Ministry of the Presidency, absorbed the costs.
In spite of this being aired in the press, the Finance Minister was still asked on Friday to explain to the House, if any of the rental contracts for Ministers were considered, or, approved by his Ministry, and/or NPTAB. He was asked to provide the House with the relevant documentation of the approvals of the Finance Ministry or the NPTAB.
The Opposition also wanted to know whether the Government’s policy on the rental and rates of accommodations for Ministers was/is guided by fiscal availability and budgetary considerations. Jordan was even called upon to identify which agencies’ budgets made provisions for these expenditures and under which heading.
In response, the Finance Minister told the House that the Opposition is aware that such emoluments of ministers are handled by the Parliament Office. He said that this includes their salaries and allowances. As such, Jordan said that the questions which were posed by the Opposition are ill-directed.
Displeased with this response, Opposition Chief Whip, Gail Teixeira took to the floor. The Parliamentarian told the House that it is the Finance Minister who accounts for all expenditure.
Teixeira said that if the Finance Minister does not answer these questions, “then who will?” It was on this ground that she sought the guidance of Speaker of the House, Dr. Barton Scotland.
The Speaker noted however that the answers of the Finance Minister will have to suffice until further guidance is provided.
A displeased Teixeira noted that the proceedings do not represent transparency and accountability.

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