– hospital board to probe
Minister of Public Health Volda Lawrence said she was not involved in the “process” for the procurement of $1.5 billion in “emergency” drugs for the Georgetown Public Hospital Corporation (GPHC), including a $605 million award to Trinidadian Company ANSA McAL, which has over the last two weeks come in for severe criticism.
While Lawrence had previously admitted to fast tracking the contract, she told media operatives at a press conference at the National Communications Network studios yesterday that as minister she “is not involved in the process of procurement.
The minister is involved in declaring that there is an emergency and declaring the need for us to implement whatever mechanisms are in place.”
She explained that at the time the decision was made to fast track the contract there was no board directing the affairs of the hospital, so the responsibility fell to the minister to make a decision.
The minister also indicated that she requested the new GPHC board conduct an investigation into the procurement process being used by the hospital. This investigation, which is yet to begin, is expected to provide details on how the contract which ANSA McAL has already begun fulfilling was awarded without the knowledge of the National Procurement and Tender Administration Board (NPTAB).
Lawrence said that on February 3, she held a meeting with GPHC’s senior management at which she was informed that in excess of 200 types of drugs were short. A stock count confirmed that 287 types of drugs were out of stock.
The minister also reported being informed that the supply crisis had developed because of gaps in the system which resulted in purchases from the private sector on a needs basis.
Having identified that an emergency existed, Lawrence said, she asked for advice on the way forward since tenders for 2017 drug supplies had not yet gone out. She explained that the regular tendering process would have taken three, four or even six months to acquire the supplies and claimed she was “instructed” to go to the shortlist and request that companies there bid to supply the medications in a much shorter time frame.
These companies were to have tendered to supply the drugs within a two-week period. ANSA McAL, New GPC, Chirosyn Discovery and Health 2000 were the companies invited to bid. Other companies, which were under investigation for failing to deliver on other contracts, were disqualified from the bidding process.
The minister could not say how these companies were selected for the shortlist, she also could not state whether the companies had applied for or been granted pre-qualification status. The minister could not state if NPTAB was contacted at any point between February 3 and February 28 even as companies were identified, tender documents prepared, tenders accepted and reviewed and contracts granted.
However, she said, Cabinet had not been informed of the contracts, only of the existing shortage. She also explained that she had questioned the $605 million award to ANSA McAL and been informed by GPHC CEO Allan Johnson that the company had been granted the award based on a tender issued and was handling the cold chain aspect.
“They were flying these things in and most of their drugs were coming from Europe and as a result of that, that is how it ended up to being that amount of money,” she explained.
While Lawrence continues to claim that her actions were in the best interest of the health of the nation. The opposition People’s Progressive Party/Civic (PPP/C) are calling for her removal.
PPP/C Member of Parliament Juan Edghill speaking at his party’s weekly press conference accused Lawrence of usurping the functions of a statutory body—the GPHC Board—by directing the hospital to buy from a particular company without the approval of the tender board.
He argued that though the hospital was within the ministry for which Lawrence holds responsibility, “ministerial responsibility does not translate to ministerial interference.”
He accused the board members of being nothing but figureheads and challenged them to release their minutes so the public can know who approved the contracts.
“If it is not an act of corruption then let the GPHC make public the minutes of the meeting where this was discussed and what was the decision of the Board to remedy the emergency situation,” he demanded. He maintained that if the board failed to produce this information they “are puppets who are not fit for office and should depart peacefully.”
Edghill stressed that repeated statements by the APNU+AFC administration that large purchases are being single source for emergency purposes are contrary to procurement regulations which specify that emergency spending should only be done if there is a national crisis or if something of catastrophic proportions occurs.
Also speaking at the press conference was member of the party executive committee and former cabinet secretary Dr Roger Luncheon who accused the government abusing the public tendering system as a means to grant favours to party supporters.
Luncheon noted that while sole sourcing is provided for under the raft of legislation passed between 2001 and 2011 it is definitely not expected to be used with such frequency. He also accused government of ignoring the statutory regulations surrounding sole sourcing thereby undermining the public procurement system.
