The Ministry of Health on Tuesday began processing a $572m payment to the New Guyana Pharmaceutical Corporation (NGPC) in connection with a contract that was awarded to the company weeks before the May 11 general elections.
According to a Ministry of Health request form seen by Stabroek News, the payment is for the purchase of pharmaceuticals and medical supplies. The document dated July 14, 2015 was signed by the Permanent Secretary Leslie Cadogan.
On April 21, the PPP/C Cabinet gave its no-objection to the award of a contract for US$6.7m (approximately $1.4b). Notification was then given on April 27 by the Chairman of the National Procurement and Tender Administration Board, Donald De Clou to the Permanent Secretary of the Ministry of Health that Cabinet had given its no-objection.
On May 9th, Stabroek News had reported that $2b in payments to NGPC for drug supplies had been speeded up. This figure was meant to have included the US$6.7m.
It is unclear if this cheque was withdrawn. At the time it would have been prepared, none of the drugs under the contract would have yet been supplied.
The awards of drug contracts to NGPC had been subject to much criticism by APNU and the AFC when they were in opposition.
The previous PPP/C government had introduced new pre-qualification guidelines for those wishing to supply drugs to the public sector and critics had charged that these had been heavily skewed in favour of NGPC to ensure that only it prequalified. In the end, only NGPC was prequalified despite complaints from several others who had applied for prequalification.
The APNU+AFC government is said to be assessing the way forward for the supply of drugs to the public health system.
