The New Guyana Pharmaceutical Corporation (NGPC) has been paid twice under the APNU+AFC government in relation to a US$6.7 million (approximately $1.4 billion) which the former PPP/C government had cleared weeks before the May 11 general elections.
These include the $572 million payment that was halted when the APNU+AFC government took office. Permanent Secretary in the Public Health Ministry Trevor Thomas told Stabroek News last week that the original terms of the contract was for the contract payment to be made in full however this did not happen and as a result NGPC is still owed although he could not say how much of the contract is still due.
Thomas said, “New GPC has been delivering medical supplies, drug as per the contract.” On April 21, the PPP/C Cabinet gave its no-objection to the award of a contract for US$6.7 million. Notification was then given on April 27 by 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 9, Stabroek News had reported that $2 billion in payments to NGPC for drug supplies had been speeded up. This figure was meant to have included the US$6.7 million.
At the time it would have been prepared, none of the drugs under the contract would have yet been supplied. It appears that the payment was not processed before the change in government.
In August, Minister of Health Dr George Norton said the entire contract for $2 billion to be used for the procurement of drugs and medical supplies, had been sent to the Attorney General’s Chambers for review and Cabinet was to pronounce on how to proceed.
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 had 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.
The government had said that it would rework prequalification requirements for drug supplies to the health sector and Thomas had previously told Stabroek News that a new document was being worked on that would be made public before the end of the year.
However, tenders opened earlier this month for the supply of medical equipment for Region Three saw bids coming from New GPC, Meditron and Inter-national Pharmaceutical Agency among several other suppliers.
