Govt. pays $265M in rent for $25M Sussex Street drug bond

Jun 26, 2018 News

After promising to cease rental of the controversial drug bond at Sussex Street, Albouystown, the Ministry of Health continues to utilise the facility and has racked up millions of dollars in rental fees.
This was disclosed by Minister of Public Health, Volda Lawrence, in response to a written question from Opposition Member, Anil Nandlall.
The answer, which was circulated at yesterday’s sitting of the National Assembly showed that the Ministry of Public Health paid $264.5M for the rental of the building to Linden Holding Inc. between July 2016 and March 2018.

A photo taken yesterday of the drug bond at Sussex Street, Albouystown.

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, during the tenure of former Minister of Public Health, Dr. George Norton, who had defended the Ministry’s use of the facility.
The controversy surrounding the use of the bond intensified when it was discovered late 2016 that the facility was merely storing items such as lubricants and condoms.
Another visit to the facility this year revealed that although there were added items by the Georgetown Public Hospital Corporation (GPHC), the manner of storage left much to be desired.
There are reports that suggest that a three-year contract has been signed for use of the facility, but Minister Lawrence had disclosed that the Ministry had planned to end the rental of the bond by December 2017.
However, she disclosed that Ministry had served a Notice of Quit dated October 2016 by then Permanent Secretary, Trevor Thomas. A reminder dated October 3, 2017 was sent by Permanent Secretary Colette Adams who had taken over from Thomas.
Lawrence had explained that the Government was hoping to take the money used for the rental of the bond and reinvest it in the public health sector. The Minister had disclosed plans to build more bonds and expand the ones the Ministry has.
The subsequent questions over the bond ultimately led to President David Granger ordering a probe and Dr. 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 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 Pan American Health Organisation (PAHO/WHO).

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News