The opposition has not ruled out initiating legal proceedings on the controversial contract for the storage of pharmaceuticals at a Sussex Street bond, according to parliamentarian Anil Nandlall.
“[We] do not rule out the process of [a] legal challenge to the contract on the grounds that it is unlawful and in contravention of the Public Procurement Act,” Nandlall, the former Attorney-General, told Stabroek News on Sunday, while adding that the PPP/C is now waiting to hear what the review, which was ordered by President David Granger, says.
Following questioning in the National Assembly, Public Health Minister Dr George Norton has faced heavy criticism over the contract, which sees $12.5 million being paid monthly to the new rental company, identified as Linden Holdings, for the bond at Lot 29 Sussex Street, Albouystown.
Norton had said that with the “exorbitant price called by the New GPC” for storage at its warehouse and the conflict of interest posed by using a facility run by a potential drug supplier, there was an urgency to find new storage.
It later emerged that the new facility was in fact a converted house and was still being renovated. In light of the ensuing controversy, President Granger appointed a Cabinet Sub-Committee to review, examine and report on the deal.
However, according to Nandlall, the law mandates that government procure such a service in accordance with the procedure laid down in the Procurement Act.
This, he said, was not done as the Act was thrown aside. “The contract was issued illegally and not in accordance with the Procurement Act,” he said.
Nandlall added that he has written Clerk of the National Assembly Sherlock Isaacs indicating that Norton, in the Committee of Supply on August 8, had promised to furnish the opposition with a copy of the rental contract.
To date, however, he said, that promise has not been kept and he hopes that the parliamentary recess would not be used as an excuse for Norton not to keep his promise to the committee.
Sub-Committee Chairman Raphael Trotman has since said that Norton had misled the National Assembly during questioning on the bond and it has been recommended that he issue a public apology. He also said that the Sub-Committee advised that the deal for the Sussex Street premises should be reviewed.
Norton has since told this newspaper that he will apologise to the National Assembly and by extension the Nation of Guyana for providing the committee of supply with inaccurate information concerning the contract.
When questioned as to when and how he will proffer the recommended apology, Norton told Stabroek News he is in the process of delivering same to the Speaker of the House.
He did not provide a specific date for the delivery of the apology.
According to the sub-committee’s report, which has been seen by Stabroek News, the lease should be revisited and strengthened and if there is a refusal by Linden Holdings Inc, government should give a year’s notice of a termination of the lease and build its own facilities in the intervening period.
“With respect to the rental sum of $12,500,000 it is the sub-committee’s considered opinion that the value should be re-assessed as it is likely that a similar facility could be obtained at a lower rate,” the report says.
It also recommends that the Ministry of Public Infrastructure should have direct responsibility for leasing and construction of all buildings by the government and should issue a Certificate of Acceptance prior to any lease or purchase agreement being signed, or a constructed building being occupied.
At the same time, it says government needed to find alternative space at the earliest possible opportunity and Norton was acting in accordance with a Cabinet directive when he tasked the health ministry’s staff to find and secure a suitable bond at the earliest possible time.
