The National Procurement and Tender Administration Board (NPTAB) will be reconstituted, according to Minister of State, Joseph Harmon, who says that after years of sole sourcing the new government intends that the award of contracts will be done in a transparent process.
During a post-Cabinet press briefing yesterday, Harmon said the current board will have to go because “that is where the initial award of contracts are made… I am saying to you now that sole sourcing was pervasive in the (last) administration. From small things to big things sole sourcing took place.”
“We already have some proposals from the Minister of Finance for that tender board to be reviewed and to be changed. That is going to happen,” he stressed, although he did not indicate how soon this is likely to happen.
Harmon revealed too that since assuming office at the Ministry of Presidency he has seen several applications for sole sourcing and he has made it clear that he will not tolerate such occurrences.
“…If you have to get three quotations, do not tell me about sole sourcing. Since I am at my desk here, I have several applications for sole sourcing. I said, ‘That is not for this administration. Go and do it right and come back,’” he informed.
Over the years under the PPP/C governments, the New GPC has been singled out for benefiting from sole sourcing. The pharmaceutical company was the main supplier of drugs for the Ministry of Health. Both the APNU and the AFC, which form the new government, have in the past expressed concerns about this situation and called for an investigation, particularly given indications that government was paying prices higher that the retail price for certain drugs.
Asked yesterday if there will now be an immediate hold and review of recent contracts awarded to New GPC, Harmon said he would prefer not to single out anyone but made it clear that the new government intends to ensure that there is transparency in the tender award process. “We are not singling out any particular individual or entity for any type of attack, or any type of special treatment but in the ministries, where the ministers have been given clear guidance to ensure that the government procedures are followed, that [is] where sole sourcing took place…the process, if it wasn’t transparent enough, we will make it transparent,” he said.
Last year, then Cabinet Secretary Dr Roger Luncheon had announced that only the New GPC was pre-qualified to supply drugs for the health sector and he said that it was because the company outscored competitors, not only in safety requirements but also in local investment.
Parallel funds
Harmon also told reporters that money from all parallel funds and private accounts held by government departments will be placed into the Consolidated Fund, where they ought to be.
Noting that while in opposition the government has always felt that there was a parallel treasury, he said there were several funds which were not paid into the Consolidated Fund and were never brought to the National Assembly to be scrutinised. He singled out the Guyana Lottery Fund, funds from the Guyana Geology and Mines Commission and NICIL. He added that the Minister of Finance has asked that these funds be audited.
“I think also there were also some bank accounts which were held at the Bank of Guyana and those sums, I believe, have actually been phased into the Consolidated Fund, so you have a little bit of flexibility now…,” he said.
“In my own capacity, I am also finding that there are some departments that held private accounts that (had) monies, which should have been paid into Consolidated Fund,” he said, while explaining that those funds were being paid into accounts which were controlled by “certain persons.”
“So, all of that will be dumped into the Consolidated Fund once we get a clear understanding of how much… what were the purposes for which deposits and withdrawals were made, we will then put them into the Consolidated Fund,” he said.
He opted not to name any of the departments, while noting that he has already provided a few and the remainder are currently under investigation. He said that he would not want to make the departments public now but promised to do so at the appropriate time.
According to Harmon, the country could be in a much better place “in another month or so once we get a handle of all these transactions, which were not basically finding themselves in the Consolidated Fund.”
Infrastructure projects review
Speaking on the continuation of big infrastructure projects, Harmon told reporters that a review will be done, particularly since large sums have already been spent.
“So, we have to see what is in the best interest of Guyana when we review these projects,” he said before singling out the airport expansion project as one of those that will come under review. He informed that he will be meeting with the Public Infrastructure Minister David Patterson and the contractors for the project.
“We are looking at other major infrastructure projects but right now what we are doing is trying to get a full brief on everything that has to do with these projects,” he said, before adding that government will make a final decision on the continuation of these projects once a full review is done by government and all stakeholders.
