In its haste to save the country a few million dollars a month, the government single sourced a contract to store pharmaceuticals under the Ministry of Public Health and while the company’s name was revealed, Minister of Public Health Dr George Norton would not provide the names of its principals or the duration of the contract.
According to Norton, government was paying the New GPC $19.2 million a month to store the pharmaceuticals and wanted a cheaper facility. He later said that with the “exorbitant price called by the New GPC” there was an urgency to find a new storage facility.
The government now pays the new rental company, registered as Linden Holding Company, $12.5 million a month and according to the minister there was no public tendering because it “was an emergency” He said the company’s facility was PAHO/WHO approved, but no certification was given by the named international agency since that is not its mandate.
It was a testy period in the Committee of Supply of the National Assembly yesterday, as opposition members grilled Norton on his ministry’s request for additional sum of money from the Contingency Fund, as per the financial paper for a supplementary budget tabled by Minister of Finance Winston Jordan.
In the end, the paper to the tune of $931,018,292 (for the period January to July 28, 2016) was voted and passed. The sum of $63,541,250, which fell under the Ministry of Public Health was the only figure to which opposition members voted “No”. The budgeted sum for this particular line item was $31,080,000. The paper was passed even though the PPP/C—particularly its member and former attorney general Anil Nandlall had issues with the money being sought from the Contingency Fund and not the Consolidated Fund as he said that under the country’s Constitution money of such nature should be accessed under the latter fund.
According to Norton, as per Cabinet decision on July 1, 2016 the Linden Holding Company, located in Middle Street, Cummingburg, was approved. In answer to the opposition members he later indicated that the bond itself was located at Sussex Street, but would not reveal the persons behind the company even though the question was asked pointedly several times.
The minister later indicated that the contract will be laid over to the National Assembly, even though he had indicated earlier that this would be subjected to whether the “other party” (the company) is in agreement.
Opposition Chief Whip Gail Teixeira wanted the minister to say whether one Larry Singh was behind the company and if the company was located in the “Side Walk Café;” he neither confirmed nor denied this. The building that once housed the Side Walk Café is owned by Minister of Public Telecommunication Cathy Hughes and Norton had earlier said that the ministry was dealing with a company and not an individual.
Asked repeatedly by PPP/C MP Bishop Juan Edghill who the principals behind the company were, the minister at one time said that the “information can be had very easily.”
This prompted Chairman of the Committee of Supply Dr Barton Scotland to caution that members would expect answers to their questions. It was at this point that the minister stated where the business was registered and said he would provide the additional information as to the principals behind it.
PPP/C Member Joseph Hamilton wanted to know about a storage bond built by the government at Diamond to bring an end to offsite storage of its pharmaceuticals and questioned why the administration is still renting storage space.
“Same reason you all do it,” quipped Minister of Social Cohesion and Government Chief Whip Amna Ally while her colleague Attorney-General Basil Williams shouted, “Democracy.”
In answer to the question, Norton said the administration had “inherited a storage facility and we hope we would not have to use it much longer.” He could not tell Hamilton when the government will discontinue using private storage for pharmaceuticals.
Former government minister Dr Frank Anthony wanted Norton to lay over the document that says PAHO/WHO certified the new storage bond, but the minister said there was no document. Questioned on the certifying agency in Guyana, the minister indicated that it falls under his ministry.
As to Anthony’s question of whether the New GPC was certified, the minister said, “We did not go into any arrangement with New GPC so I can’t say if it was certified.”
Not to be thwarted, Anthony asked whether the minister was aware that the US Government certified the New GPC bond under its PEPFAR programme; the minister said he could not answer that question.
“Boy, Bobby gone,” Ally told Anthony at one point as he continued his line of questioning. She was referring to Dr Bobby Ramroop, a close friend of former president Bharrat Jagdeo, who is the owner of the New GPC.
PPP/C Member Charles Ramson also wanted to know whether Norton was aware that it was public money he was asking to be approved, stating that the public has a right to know the requested information. In response, the minister said the APNU+AFC is a government that is very transparent adding that it had no problem releasing the contract “once the other party is in agreement.”
This resulted in some amount of back and forth between the two sides and at one point, Ally said loudly, “You shut up Indra!” referring to PPP Member Indra Chandrapal.
“And that is the Minister of Social Cohesion,” a member of the PPP quipped as others continued their almost inaudible comments.
This saw Dr Scotland commenting that certain comments can render members out of order.
Edghill further grilled the minister on the date and duration of the contract with the storage company and after some time he said again that the contract will be laid over.
“This is shameful,” former president Bharrat Jagdeo commented, but Attorney-General Williams said, “Let’s move on.”
In the end the figure was passed after government members voted yes but there was an emphatic “No!” by members of the opposition.
Agriculture
Minister of Agriculture Noel Holder was also grilled by opposition members on the $234,716,100 for which approval was being sought. The explanation that the spending is associated with the National Drainage and Irrigation Authority owing to the increase in expenditure resulting from the unexpected prolonged dry season affecting Regions 2, 3, 4, 5, 6 and 10 and later increased rainfall and rising water levels did not find favour with the opposition.
Repeated questions about the locations of some tractor-powered pumps provided to assist with the rising water led a seemingly fed-up Holder to ask if the opposition wanted the Global Positioning System (GPS) of the pumps.
PPP/C Member Dharamkumar Seeraj felt that the explanation provided was vague and in response Minister Holder read the entire explanation given in the financial paper and this caused Seeraj to comment that the minister was skirting the question. This was after Holder said the pumps were located in Trafalgar, Tempe and Union, all in West Berbice.
The minister later revealed that the tractor-powered pumps were rented at $5,000 an hour and that the fuel and lubricants had to be provided.
PPP/C Member Needkumar wanted to know how much money was spent in Linden and where and to this the minister named the West Watooka community and stated that spending there was to alleviate El Nino effects. The opposition member expressed some disbelief saying, “I know Linden.”
“So you saying the minister lying?” questioned Chief Whip Ally, even as Needkumar questioned whether the money was used to transport persons to the Golden Jubilee celebrations. The minister said no funds were used for that purpose.
Edghill wanted to know what was “extraordinary” about this year’s rainfall and Holder pointed out that the rains came very late and it was not normal. Later, in response to Cornell Damon, the minister stated that it was one of the worse El Nino periods the country had experienced. For Damon the answer provided by the minister indicated that there was “poor planning” on the part of the ministry.
Golden Jubilee
Also in the hot seat yesterday was Minister of Public Infrastructure David Patterson who faced questions over the $406,758,312 spent on the D’Urban Park Development Project a significant increase from the $72,889,000 previously voted on.
Needkumar wanted to know if the work was tendered out and the minister responded in the affirmative adding that 16 companies were awarded contracts. He went on to list the companies and said that all were paid in full.
Edghill asked what were the unforeseen circumstances of the expenditure and the minister pointed out that it was not budgeted for under his ministry but rather it was by public announcement in April that the project came under the ministry. It was following several articles in the Stabroek News about the shoddy workmanship at the park President David Granger announced the project would fall under the Ministry of Public Infrastructure.
The minister was also asked as to whether more money would be spent at the park and he said his ministry would not be spending more money, but revealed that the park would soon come under the Ministry of Communities.
Also approved yesterday were additional sums spent on office materials and supplies, vehicle spares and services and other transport and travel all falling under the Guyana Defence Force, the 46th Republic Anniversary and the 50th Independence celebrations and the intensifying of Operation Dragnet.
Additional sums were also approved for maintenance of drainage and irrigation work in Region 6: East Berbice/Corentyne –Agriculture. The sum of $41,002,620 was spent to provide additional resources to pay for emergency excavation works done in various areas of Region 6.
