New GPC gets over $7B in contracts from PPP Govt.

Nov 21, 2022 News

…but failed to deliver drugs worth over $478M – AG report

Kaieteur News – The Auditor General (AG), Mr. Deodat Sharma, in his first full year review of the PPP Government has found that a company owned by the friend of Vice President Bharrat Jagdeo, received over $7 billion in contracts to supply medical products to the Ministry of Health, but at the time of the audit, over $478 million in drugs were yet to be delivered.

Table showing the companies that received contracts from the Government of Guyana in 2021 to supply medical products

In his 2021 Report, the AG explained that the sum of $7.306 billion was allotted under Line Item 6221 – Drugs and Medical Supplies. Allotment transferred to this Line Item totalled $80.708M, while Supplementary Allotment amounted to $6.683 billion. The total revised allotment amounted to $14.070 billion. This represents a seventy-three percent increase in allotment, when compared to the previous year’s expenditure of $8.122 billion.

An analysis of the payments found that a total of $13.893 billion was withdrawn and spent to procure medical supplies to 14 agencies. Notably, New Guyana Pharmaceutical Corporation (GPC), owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, received the bulk of monies from the Ministry to provide drugs.

According to the report, “An examination of the contracts revealed that amounts totalling $7.314 billion were entered with the NEW GPC. Amounts totalling $6.631 billion were paid to the supplier which includes prior year payments totalling $683M.” However, at the time of reporting, the Audit Office said supplies totalling $478.963M were yet to be delivered.

In response to the AG’s findings, the Ministry of Health acknowledged that as of September 2022 the $478.963 million in goods were yet to be delivered. It explained, “The remaining deliveries are still ongoing due to logistical constraints that would have impacted the entire supply chain negatively and as per MOH staggered delivery period.”

The Audit Office recommended that the Head of the Budget Agency take the necessary action to ensure that the drugs and medical supplies already paid for are delivered as intended.
Meanwhile, Western Scientific Company, another drug supplier for the Ministry that received the second highest amount in contracts also failed to deliver the products on time.

The Auditor General pointed out that, “amounts totalling $3.212 billion were paid as at 31 December 2021. Of these payments, supplies valuing $695.671M are yet to be delivered at the time of reporting.”

Again, the Ministry confirmed that as of September 2022 the goods were not delivered due to logistical constraints. The AG gave similar orders to ensure the drugs were delivered.
The New GPC in 2020 was also found to be the single largest supplier of drugs and medical supplies to the Government of Guyana, securing more than half of the more than $8B spent for that purpose during that year.

The company topped the list of 33 suppliers to Government, providing supplies for contracts higher than $6M and securing some $4.4B in contracts.
It would be apposite to note that GPC was up to 1999, a State owned Company however when Vice President Jagdeo, in August 1999 assumed Office as Executive President of Guyana, by December of that year, the company was sold to Dr. Ramroop.

A first tranche was paid but before the remainder could be paid off government re-evaluated the business and told Dr. Ramroop to pay a lesser amount.
The APNU+AFC Coalition while in Government had pulled several contracts from Dr. Ramroop owned companies including the payment for storage and medical supplies. The Coalition had then contracted a party financier, Larry Singh, for the storage of drugs and medical supplies in what was condemned as a bottom house set up.

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