As government prepares this week to name a person to head the investigation into alleged drug procurement malpractices at the Ministry of Health, it is cognizant that persons making the allegations might not want to come forward with evidence.
“The important matter to understand, in matters of this nature, is that when people make allegations they must be prepared to come and give that information to a properly constituted inquiry,” Minister of State Joseph Harmon told a press conference last Friday.
“Sometimes that is the problem you have; that sometimes someone is prepared to quietly whisper something in your ear but they are not prepared to come to an inquiry to say, this is what we have found, this is what I know and this is what I am prepared to say,” Harmon added.
Sources close to the investigation told Stabroek News that while there is “damning evidence” against officials at the Ministry of Health, some of the persons making the allegations have said that they are fearful of giving public evidence. “You know some of the people are bidders and they have expressed this fear that if there is an inquiry they don’t want their names called…they may have a point because their argument is that if nothing comes out of it, what will happen when they bid again?” one source said.
The allegations pertain to Ministry of Health staff passing insider information to bidders seeking lucrative drug procurement contracts, among other procurement malpractices.
“Cabinet says that while he [Minister of Public Health Dr George Norton] will provide a report on a matter he raised about drug procurement, it feels that there should be an independent investigation because you cannot have someone from the Ministry of Health investigating the Ministry of Health,” a source close to the issue told Stabroek News last week.
“This is a very serious matter and he will provide and hand in his report with all the things he knows and the allegations he would have heard and so forth, but then there will be a presidential investigation,” the source added.
Stabroek News was told that complaints were made to the Minister of Public Health and other officials at the ministry about staff members’ improper behaviour as it relates to procurement of drugs for the ministry.
The Minister of State informed that the matter was last week Tuesday raised at Cabinet and there should be the appointing of the person to head the probe this week.
Harmon explained, “Yes, in fact the matter was raised and discussed at Cabinet. What we have are statements that have been made by certain persons that came to the attention of the honourable Minister (of Health) and so Cabinet has decided that an investigation, an inquiry, will be launched into these reports and these allegations.
Though he said there are certain limitations, as it pertains to persons coming forward with evidence, government is still pressing ahead with the probe, in the interest of transparency and accountability. “So that might be a challenge. But because of the seriousness with which the administration views this…the Cabinet has agreed to have an investigation launched into this matter,” Harmon asserted.
Permanent Secretary of the ministry, Trevor Thomas was away from duty, on vacation, when Norton learned of the allegations and when he returned to work last week, he had to provide his minister with information for the report, given that he is the person responsible for the financial transactions of the ministry.
Thomas will most probably be called before the investigative team also because of the capacity and scope of his work and will have to answer to various questions on the allegations.
It was explained to this newspaper that one of the primary reasons that Cabinet recommended a presidential probe was that if a person or body was chosen they would have subpoena powers to call on any person to report to them on the issue.
In addition, with an independent probe, government expects not only transparency and fairness in reportage but hopes that the recommendations given will serve as a guide to bettering the ministry’s procurement processes and practices.
The Ministry of Health, under the previous PPP/C administration, had been highly criticised over its procurement practices, particularly the awards of drug contracts to New GPC.
The former 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 New GPC to ensure that it was the only company to prequalify.
In September last year, then permanent secretary Leslie Cadogan, was dismissed for alleged gross negligence and misconduct in the performance of his duties.
A letter, dated August 31, 2015, from Harmon to Cadogan, said that he was being dismissed in accordance with Clause 7 (a) of his contract. The letter went on to blame him for various problems related to drug procurement.
Rental of a bond
This government has been criticized too, for the sole sourcing of the rental of a bond to businessman Larry Singh.
Following questioning in the National Assembly, Norton has faced heavy criticism over the three-year contract, which was sole-sourced to Singh’s company for the Sussex Street, Albouystown bond, at a rate of $12.5M per month.
The Ministry of Public Health has been threatened with litigation by a taxpayer if it does not cancel the controversial contract on the basis of the “unreasonable” monthly rental cost, the unsuitability of the premises for the intended purpose and the violations of the Procurement Act that were committed in the sole sourcing of the contract.
Government subsequently launched a probe and a report with findings and recommendations was presented to it. Cabinet would later term the contract “undoubtedly undesirable” and appointed a new team to look at implementing some of the recommendations which included renegotiating the contract with Singh and urgently moving to build its own bond.
The Minister of Health told Stabroek News last week that renegotiations had begun.
This newspaper understands that Singh has agreed for rental of the space for a year under a lower rental fee.
The Ministry in the meantime has requested of the Minister of Finance that monies be budgeted for the building of a bond in Georgetown in the 2017 budget.
It is not clear what would happen after the year’s contract at the lessened rate with Singh expires.
“We will pay him less in the meantime as we push to get our own building. But building a building doesn’t happen overnight so that is a process itself. I guess we will ask (the ministry of) finance for the money. Hope we get it for next year then move to tender and construction and do on,” an official stated.
“I guess we are looking at by 2018 that we have our own bond. So that will cut down his agreement by a year? Yes I think by a year. We hope to get all this in order let’s say by 2018,” he added.