Process activated to end Sussex Street drug bond lease- Harmon

Process activated to end Sussex Street drug bond lease– Harmon

Mar 10, 2018 News

The Sussex Street drug bond

Government is continuing to rent the controversial Sussex Street drug bond but the lease is to be terminated soon.
Questioned about it yesterday, Minister of State, Joseph Harmon, disclosed that the process has been activated for the lease of the bond to be terminated soon.
In December, during the considerations of the Budget 2018 estimates in the National Assembly, Public Health Minister, Volda Lawrence, disclosed that the drug bond will be rented in 2018 at a fee of $12.5M for at least two months.
It was reported then that it was the Public Health Ministry’s intention to bring the contract for the rental of the Sussex Street drug bond to an end by December 31, 2017.
However, it was housing a CT scanner for the Bartica Regional Hospital. The section of Bartica to house the CT scanner was under construction. It was 55 per cent completed.
The issue of the bond surfaced in 2016 when it was learnt that the bond had been rented under very lucrative terms to businessman, Larry Singh.
The subsequent questions led to President David Granger ordering a probe and former Health Minister, Dr. George Norton being hauled before the Parliamentary Privileges Committee.
Norton had admitted that the Government had entered into a multi-year rental agreement with a new company, Linden Holdings Company, to store pharmaceuticals and medical supplies.
The Opposition had believed that Norton misinformed and misled the National Assembly when he stated that the reason that no procurement process was followed with regard to the selection of the company, Linden Holding Company, for a three-year contract was that the facility was required on an emergency basis.
The Opposition also claimed that Norton misinformed the House when he said that the facility for storing pharmaceuticals and medical supplies was certified in keeping with international standards set out by PAHO/WHO.
Photographs and visits by Parliamentarians found that the bond of less than 6000 square feet was devoid of any facilities required for a fully equipped and certified pharmaceutical bond as claimed by the Minister.
The House had been informed that $25M had already been paid in rental and security deposit for the period July to August 2016.
President Granger had set up a Cabinet sub-committee to review the matter. This Committee recommended that Dr. Norton apologize to the Speaker, which he did.
Norton has also held a press conference to announce that he had erred based on advice that he had received.
Linden Holdings Company is owned by firearms dealer Larry Singh.
Late last year, the Opposition wrote the Public Procurement Commission (PPC), the body that overlooks state contracts, asking that it investigate the matter.
On August 23, 2016, an unsigned copy of the contract was released to the public. The contract shows that the rental is for “office space” and not a bond for the storage of pharmaceuticals.
The contract also includes exceedingly generous conditions for the landlord for three years and includes a 12-month notice of termination.
The issue with the Sussex Street bond facility came up for the first time in the National Assembly on August 8, 2016 when the Committee of Supply examined the supplementary provisions requested by the Government for money for several state agencies and projects.
“The National Assembly debated an allocation of some $87.5M with $25M already spent as a security deposit and $12.5M representing monthly rentals from August to December 2016. The sums were paid to the Linden Holding Inc.”
Under the previous administration, it was the source of much contention after it became known that companies associated with Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President, Bharrat Jagdeo, received the lion’s share of contracts.
State auditors had pointed to significant cases of non-delivery and other even sole-sourcing.
It involved billions of dollars.