The APNU+AFC Government has halted 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, citing the need for a full review.
According to Minister of Health Dr George Norton the entire contract for $2B, to be used for the procurement of drugs and medical supplies, has been sent to the Attorney General’s Chambers for review and Cabinet is to pronounce on how to proceed.
NGPC currently supplies roughly 80% of drugs to the health ministry and with the contract up for review the public health system has been left without a supplier. Dr Norton told Stabroek News on Saturday that while there is no supplier he expects a decision to be made by cabinet soon and that the contract would be re-tendered under new procurement procedures.
The minister stated that there is still a flow of drugs to the public health sector and that drugs such as anti-retrovirals for patients living with HIV/AIDS would not be affected. Norton played down the difficulty of not having a drug supplier telling Stabroek News that there would be a resolution once the AG has pronounced on the contract.
To date however the government has not made any moves in relation to the procurement process and a revision of the criteria that drug suppliers will have to meet in order to prequalify. Should no modifications occur under the current scheme NGPC would once again be the only company to prequalify. The former PPP/C administration had been criticised for pre-qualification guidelines that many stated were skewed heavily in favour of NGPC.
While in opposition, both APNU and the AFC had vowed that they would revisit the question of drug procurement and ensure that there was no monopolising of the trade. They had complained that billions of dollars have been channelled to NGPC over the years through sole-sourced contracts and later through the limiting of who could bid for contracts. NGPC was the only company to have pre-qualified under the procedures introduced by the PPP/C government and this had been met by howls of protests from other bidders including Trinidad conglomerate ANSA McAl. NGPC had formed a close relationship with the Jagdeo administration and this continued under the Ramotar administration.
Permanent Secretary in the Ministry of Health Leslie Cadogan was sent on leave on July 16 2015 “in light of growing concerns relative to the procurement and distributing of pharmaceuticals,” according to a letter to him from the Minister of State, Joseph Harmon.
The letter to Cadogan came on the heels of a report in the Stabroek News that the Ministry of Health had begun processing the $572M payment to the NGPC on July 14 via a request signed by 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) contract just weeks before the general elections. 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. At the time it would have been prepared, none of the drugs under the contract would have yet been supplied. Norton didn’t say if this was still the case but did allude to the fact that since the contract was under review no drugs would be supplied.
This newspaper on Friday contacted Chairman of NGPC, Bobby Ramroop who stated that he would not be able to comment on the current contract or any outstanding payments.
