$366M drug contract to HDM Labs… Health Minister blames staff for her failure to answer Parliamentary questions

Aug 11, 2018 News

Public Health Minister, Volda Lawrence

Public Health Minister Volda Lawrence on Wednesday requested more time to respond to several health-related questions in Parliament, including the controversial multimillion-dollar drug contract awarded last year to US-based HDM Labs Inc.
The $366M contract has raised eyebrows, because the company seems to have little experience in supplying pharmaceuticals to Guyana. This prompted Former Health Minister and Opposition MP Frank Anthony to table several related questions in the National Assembly.
“The staff is presently working on their budget and the questions asked are very lengthy, some of which they have to do some research to get the documents to support the answerer. Within the timeframe, the answers could not be provided with the necessary documentation to back it up. That is why we are asking for an extension,” Lawrence stated.
Lawrence requested under Standing Order 22(Para 9), that all questions standing in her name be deferred for the period allotted under the standing order. That period is for 12 days, but Opposition Chief Whip, Gail Teixeira stated that Parliament goes into recess on August 10 and returns on October 10.
Teixeira stated that the questions had been on the order paper more than 21 days prior. The House approved Lawrence’s request with Government MPs outvoting the Opposition, 32-29.
The Health Minister is also facing questions from opposition MP, Dr. Vindhya Persaud in relation to the status of the Child Morbidity and Mortality Committee, and the measures being taken to prevent infection levels in the neo-natal Intensive Care Unit at the Georgetown Public Hospital.
Recently, leaked ministry’s documents disclosed that HDM came out winner above Ansa McAl Limited, Caribbean Medical Supplies, Global Healthcare Supplies, International Pharmaceutical Agency and Meditron Inc.
All had submitted to deliver drugs to fulfill a shortage of drugs last year but they all, including HDM Labs, failed to meet the criteria.
The ministry had explained the documents in the hands of the media were drafts, wickedly lifted from its computers. It denied that any contracts were issued in June as the “draft” documents claimed.
Rather, the award was not made until the end of August last year, after approval by the National Procurement and Tender Administration Board and “noted” by the Cabinet of Ministers. The approval would have been made after a retender and with HDM Labs being the only company that submitted a bid.
There are questions as to why Ansa McAl Trading Limited failed on the ground of “Experience and Technical Capacity (Evidence that demonstrates bidder has carried out similar transactions)” for such a small contract, when they were early in 2017 awarded a $605M contract for the supply of pharmaceuticals.
HDM Labs’ offices were traced to two Long Island, New York homes, one of them the home of Hardat Singh.
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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