Latest update February 9th, 2025 1:59 PM
Jun 29, 2018 News
The Ministry of Public Health yesterday committed to ending the rental of drug bonds, in particular, one at Sussex Street, Charlestown, by the end of the year.
This announcement came days after it was disclosed that Government has paid $264.5M to Linden Holding Inc., for the rental of the building in Charlestown between July 2016 and March 2018.
Minister of Public Health, Volda Lawrence, had disclosed to Kaieteur News that the storage of a computed tomography (CT) scanner is the only reason that Government continues to utilize the bond.
The ministry has budgeted for the construction of a drug bond in Kingston, Georgetown, while expansion work on the Diamond bond is underway.
Additionally, the ministry’s adoption of a new procurement system for drugs and medical supplies will require them to have adequate, specified and suitable spaces for the storage of these supplies.
Minister Lawrence reminded the media that during the examination of Budget Estimates in 2017, she had indicated that the controversial rental of the Sussex street drug bond would be no more by the end of 2017. However, the bond continues to be utilized for the CT-scanner which is designated for the Bartica Hospital.
“As soon as they (the regional authorities) give us clearance that the room is ready, we are ready to remove that CT scanner to Bartica and give up that bond. As a matter of fact, I am on record as saying that as of the 31st December 2018 the Ministry of Public Health will not be renting any more bonds,” Minister Lawrence explained yesterday.
Based on the monies paid for the rental, Government is expending $12.1M per month. According to Lawrence, the scanner is valued at about US$90,000 ($1.8M).
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.
Dr. Norton defended the Ministry’s use of the facility.
The controversy surrounding the use of the bond intensified when it was discovered in 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, the manner of storage left much to be desired.
There are reports that suggested that a three-year contract had been signed for use of the facility.
However, Lawrence said that her 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.
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