Minister of Public Health Volda Lawrence should properly explain to the nation why over $605M had to be fast-tracked for emergency drugs for the Georgetown Public Hospital Corporation (GPHC), the People’s Progressive Party (PPP) yesterday said.
“The minister must explain why she had to purchase over $605M, I understand $1.5B, in emergency drugs…why not a smaller amount to satisfy the imminent needs, while a proper and lawful tendering process is embarked upon, in relation to the acquisition of a larger amount required,” PPP’s Shadow Minister of Legal Affairs, Anil Nandlall, told Stabroek News.
The party says that in addition to Lawrence being made to answer to the National Assembly on where the monies came from, the procedures she followed and if the Georgetown Public Hospital Board knew and authorized the said transactions, Cabinet must also say if it knew about the fast-tracking and granted its no-objection.
“From where did the finances come for this huge purchase? One gets the impression that money has already been sent to order these supplies. Did it come from the MOH’s (Ministry of Health’s) budget? If not then it must only come through a supplemental financial paper to be supplied in parliament for approval. Parliament sat only last Thursday and there is no such financial paper presented. The National Assembly will next sit until …April so one must question where is the money coming from? If it came from the MOH then one has to inquire whether the proper procedure was followed for such a huge sum in a singular transaction. The opposition will be scrutinizing this transaction in great detail,” he added.
Lawrence has come under fire for the award of a $605M drug procurement contract that went to ANSA McCal without the knowledge of the National Procurement and Tender Administration Board (NPTAB) and without compliance with procurement rules.
On Saturday she defended her decision saying that there was a chronic drug shortage and the award was to satisfy that demand. It was the first time she publicly acknowledged that there is a crisis-level drug shortage, which she blamed on a conspiracy between contractors and ministry staff.
“My priority is to ensure the nation’s health is given top priority. The health system will not be held hostage by unprincipled persons and therefore I made the decision to shortlist the critical but unavailable items and the suppliers with the ability to provide them on time to avert deepening the drug demand difficulties,” Lawrence was quoted as saying in a release, sent out by the ministry.
Maintaining that the public procurement process was not breached, although the national tender board was not aware of the decision until its approval was sought after the transaction, the minister informed also that three other companies received contracts.
And while she listed the companies -the NGPC, the Eccles, East Bank Demerara-based Health 2000 and Canadian entity, Chirosyn Discovery – Lawrence did not state the respective amounts for these companies.
This newspaper understands that the total amount for procurement of emergency drugs for the GPHC, is $1.5B. ANSA McAl’s contract was pegged at $605M, New GPC over $400M and the other two companies the remainder.
No explanation was provided for why approval from the NPTAB was only sought after the fact rather than have it manage the process in keeping with its statutory responsibility.
Chairman of the NPTAB, Berkley Wickham says that the board was left in the dark. He told Stabroek News last Thursday that he had not seen the contract or approved the sum and when a letter came to him to approve $605M for ANSA McCal he immediately notified the minister.
The PPP says that Lawrence going to the NPTAB without the correct procedures being followed was unlawful and she should be held accountable. Nandlall said that her allegations against suppliers to the public health system should also be looked at by law enforcement.
Lawrence’s statement alleged that that up to the present time she is still uncovering “a combination of skullduggery, collusion, delinquency, deliberate breaching of established sector protocol by Public Health staff, manipulation of the system by importers with the support of employees and fabrication of records including evidence of bogus receipts.”
Lawrence is quoted as saying that the situation is so dire that police have been called in to deal with staff who are selling drugs to private pharmacies.
She asserted that the current drug shortage is a “ploy” manufactured by “unprincipled importers” and “crooked Public Health staff” to enrich themselves. There is a widespread practice among some suppliers, Lawrence claimed, to wait until close to the contractual delivery date and then indicate their inability to supply the items for which they have had been paid, while others supply a few of the items then refuse to supply the remainder, blaming unexpected changes in global market prices.
Nandlall called on Lawrence to name the unprincipled and crooked staff so that the law can take its course.
“The Minister’s statement, has raised some serious questions which must be candidly addressed. The minister has implicated several members of staff of the GPHC, the Ministry of Public Health and several private companies supplying drugs and medications to the public health system, in what can amount to a criminal conspiracy to defraud and which has actually defrauded the state … This is a most serious matter and one which should attract the attention of SOCU (Special Organised Crime Unit) and SARU (State Assets Recovery Unit). The minister needs to name these persons and disclose the names of these private companies, that she claims are engaging in this repeated act of sabotage,” Nandlall declared.
“While I recognize that there are provisions which allows for NPTAB to accelerate the tender process, in cases of emergency, the fact is that it is NPTAB’s process which must produce the supplier. Here you have the minister instructing NPTAB about a supplier which she identifies –ANSA McAl – that is clearly unlawful and that defeats the entire public procurement process. We are aware that the Fiscal Management and Accountability Act was amended by this administration to make ministers criminally liable for utilizing improper procedure in the acquisition and expenditure and misuse of public funds. Also, the nation is very familiar with offences like conspiracy to defraud the state of revenue. The opposition will be examining to see if these offences have been committed. I know that my colleague Irfaan Ali, the Chairman of the PAC (Public Accounts Committee of Parliament) will have a lot to say on this matter but he is out of the country. His remarks will focus on the role of the PAC and what actions they will contemplate in face of this massive irregularity. In this equation one cannot discount the fact that the minister under review functioned for nearly a decade as chairperson of the PAC,” he added.
Pointing out that Lawrence’s statement failed to say if Cabinet was notified, Nandlall said that this information should also be made public.
In addition, Lawrence should also make clear if the Board of the GPHC knew of the contract and the Board should confirm or deny this.
“It is interesting to note that the minister has omitted to indicate whether Cabinet is even aware of this transaction or more so if Cabinet authorized her to act in the manner in which she did.
Another conspicuous omission in the minister’s explanation, is the role, if any which the Board of the GPHC played… The GPHC is a public corporation run by a board and it is the board which makes decisions in relation to the hospital. It would appear, based upon the information that the minister has presented, that the ministry has usurped the role and function of the governing board. A lot of issues have to be examined and the minister has to clarify these matters quickly.”
