THAT DRUG BOND RENTAL

Jul 30, 2018 Editorial

After more than two years of promising to cease rental of the controversial drug bond at Sussex Street, Albouystown, the facility is still being used by the Ministry of Health, which has racked up G$264.5 million in rental fees or G$12.1 million per month.This was disclosed by the Minister of Health, Volda Lawrence in Parliament. According to the Minister, the rental of the bond from Linden Holding Inc. between July 2016 and March 2018 was needed to store a CT-scanner donated by RAD-AID International.Many in the public are at a loss for words as to the manner in which the government is spending the taxpayers’ money.
The Minister of Health further stated that the rental of the bond will be terminated at the end of this year. Whether it happens or not, it does not make sense for the government to expend G$264.5 million to store a scanner valued at about US$90,000 or G$18M. There is no justification for this kind of spending of public funds even though some might argue that the PPP did worse. Not only is it irresponsible, but it is also penny wise and pound foolish.
The rental of the bond on Sussex Street from Linden Holdings Inc. dates back to 2016 when the Opposition People’s Progressive Party had raised concerns about its rental. At the time, it was learnt that the bond had been rented under very lucrative terms during the tenure of former Minister of Public Health, Dr. George Norton. Its principal is Larry Singh, a long time People’s National Congress Reform member.
The controversy surrounding the use of the bond intensified when a team of parliamentarians from both the Opposition and the government visited the facility in late 2016 only to discover that items such as lubricants and condoms were stored in it. In defending the Ministry’s use of the facility, Dr. Norton told the National Assembly that the reason why no procurement process was followed with regard to the selection of the company for a three-year contract was because the facility was required on an emergency basis. On another occasion, he informed the House that the facility for storing pharmaceuticals and medical supplies was certified in keeping with international standards set out by both the Pan American Health Organization and the World Health Organization. It was later revealed that on both occasions, the Minister misled the National Assembly.
Shortly, after the controversy surrounding the drug bond erupted into a scandal, President Granger transferred Dr. Norton from the Ministry of Public Health to a smaller ministry, Ministry of Social Cohesion. He established a sub-committee, which recommended the rental sum of G$12,500,000 per month be re-assessed because it is likely that a similar facility could be obtained at a lower rate. The subcommittee also recommended an early termination of the five-year contract. Dr. Norton was subsequently brought before the Parliamentary Privileges Committee where he admitted that the government had entered into a multi-year rental agreement with Linden Holdings Company to store pharmaceuticals and medical supplies.
Despite the subcommittee’s recommendation of a reduced rent or an early termination of the five year bond contract, two years later, the contract has not been terminated or is not even nearing termination and the rental sum of G$12.1 million per month has not been lowered. As if that was not enough, the Minister of Public Health has confirmed to the Parliamentary Budget Committee that budgetary allocations have been made for the rental of the facility until the end of 2018.
By that time, the government is expected to spend about G$350M of the taxpayers’ money on rental fees for the drug storage bond. Yet it cannot afford to offer subsidies to pensioners in relation to their water rates and electricity bills or provide proper medical supplies and healthcare for the sick or better educational facilities for students. It does not have enough funds to render assistance to farmers and miners, repair roads, modernise the infrastructure or provide adequate potable water to the people.

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