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Health Ministry defends $366M drug contract…Procedures were followed; company was only one that tendered
The Ministry of Public Health has come out, defending the award of a drug contract last year worth over $366M to New York-based HDM Labs Inc.
There were questions about the procedures used in that award, with HDM, which is owned by US-based Guyanese, Hardat Singh.
Yesterday, Permanent Secretary, Collette Adams made it clear that the sequence of events as carried in the media recently was not reflective of the true picture.
She explained that early last year, it was recognized early that there was a shortage of drugs and a decision was taken for the emergency ordering of a quantity.
Collette Adams
In April, six companies- Ansa McAl Limited, Caribbean Medical Supplies, Global Healthcare Supplies, International Pharmaceutical Agency, Meditron Inc, and HDM Labs Inc. all responded.
However, according to Adams, none of the companies met the criteria.
The National Procurement and Tender Administration Board (NPTAB) then turned down a request in late June for the award to be made via sole tender.
NPTAB recommended that the Ministry go back a new tender instead.
On July 12, the Ministry said it wrote the six companies telling them that they have been selected to be part of the retendering process for emergency pharmaceutical supplies.
The companies were issued with the preliminary checklist for evaluation for the previous tender.
They were told to uplift hard copies from the Ministry’s Procurement Department, at its Brickdam office.
The tenders were opened the following week.
According to the PS, who said she was embarrassed by the recent coverage, the only company, which responded to the retendering was HDM Labs.
The NPTAB in August recommended HDM Labs and the Cabinet noted the award on August 29.
According to Adams, the contract was awarded on August 31, 2017.
Yesterday, Health Minister, Volda Lawrence, in a statement, said that she will provide further and complete details in the National Assembly on this matter tomorrow.
She said that she has taken note of the “curious timing” of this non-story, almost an entire year after the contract was awarded and, importantly, when a certain critical political decision is imminent.
“Minister Lawrence trusts that this issue is not part of what would be a sinister campaign to influence this decision.”
Yesterday, the PS said that from indications the “leaked” documents in the possession of media houses were draft ones that clearly were lifted from the Ministry’s computers. It is not the real thing and the intention was wicked.
She said that an investigation will be launched and that from what transpired, the intent was clearly to embarrass the Ministry and Government.
“I can tell you that as a Public Servant, there are strict instructions with regards to the treatment of contracts. We follow those rules very carefully and NPTAB is engaged all the way. Our Ministry has measures in place to ensure the weaknesses are weeded out and not like what happened in the past.”
The official said that contrary to news reports, no contract award was made on June 20, but rather on August 31.
Questioned about the track record of HDM Labs, the official said that the NPTAB has strict rules and that the evaluation committee of which she was part must ensure that a checklist is ticked.
HDM, she said, would have submitted financial statements and shown capacity that it has to deliver the drugs.
In fact, she said, all the drugs were delivered since last year without the contractor being fully paid. He is still owed, she said.
HDM, she also said, has supplied drugs and other pharmaceuticals to the Georgetown Public Hospital Corporation.
She said that the evaluation committee, which she headed, was satisfied that the company which has been in existence for over two decades, therefore meeting one of the criteria.
Adams explained, also, that when a tender is advertised, the bids are open publicly by NPTAB.
NPTAB then send those tender documents to the evaluation committee, which peruses it and ensures that the criteria are met.
A recommendation is then made to the NPTAB, which has to green light the award before it goes to Cabinet.
All the procedures, from reengaging the suppliers to NPTAB, to going back to Cabinet were followed, the PS insisted.
The issue of drug supplies to Government-owned hospitals has been a bitter one in recent years with accusations that under the previous PPP/C administration the contract awards were fixed that only certain companies could have been approved.
The contracts at one time were worth up to $5B annually.
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