Citing the need for additional storage for pharmaceutical and medical supplies, the Ministry of Health is inviting bids for the rental of a warehouse that will be used for storage, a move Minister of Health Dr Frank Anthony has stated is necessary as the existing facilities have exceeded capacity.
In an advertisement appearing in the Sunday Stabroek, the ministry said that it was inviting sealed bids and bidding will be conducted in accordance with the national competitive bidding procedures.
Anthony last week told this newspaper that the drug storage bond at Diamond, East Bank Demerara is being used to capacity while the Kingston, Georgetown, bond is used for the storage of equipment.
“We actually don’t have enough storage [as] all of our bonds are being used to capacity. We have made orders for additional drugs and reagents. Those items will be arriving soon,” the health minister pointed out.
He noted too that with COVID-19 pandemic, there have been increased orders for personal protective equipment (PPE) which is taking up additional space.
“The PPEs such as the mask and gowns may seem small but they are very bulky and take up storage space… so we have to cater for all of this now,” Anthony added.
Under the David Granger-led administration, then Minister of Public Health George Norton found himself in hot water over a controversial bond deal with Linden Holdings Limited (LHI).
A report found that tender board procedures were not followed as there was no public tendering, and in fact, no procurement procedures were applied in the awarding of the three-year contract to LHI.
In referencing this, Anthony assured that all procurement procedures will be followed. He said that publicly announcing the invitation for bids is the first step in ensuring that the right procedures are followed.
The bids must be submitted to the Chairman of the National Procurement and Tender Administration Board at the Ministry of Finance. Bids are scheduled to be opened on February 16. It was noted that late bids and bids not clearly labelled will be rejected and return to the bidder unopened.
The 2019 Auditor General report stated that the procurement of the Sussex Street, Charlestown, drug bond was in breach of Sections 25 (1) and 10 (1) of the Procurement Act, which states that subject to subsection (2), public tendering is mandatory. For such tendering, an invitation to tender or to prequalify, as applicable, is mandatory, the report quoted the law as stating. It also required that the procuring entity shall maintain a record of the procurement proceedings including the means used to solicit suppliers or contractors and a record of any such advertisements.
The explanation proffered for this breach was dismissed by the Audit Office, which highlighted that the facility which was “required on an emergency basis” was not utilised for two months even though $37 million had already been paid to the owner.
Over the period July 2016 to August 2018, the then ministry paid a total of $337.5 million to LHI, inclusive of a $12.5 million security deposit.
Questions about who authorised the lease agreement revealed a Cabinet decision dated July 12, 2016, more than a month after the date of the agreement.
Once the agreement became public, the ministry made attempts to end the contract. These attempts were stymied by a provision in the tenancy agreement, which stated that “the tenancy may be terminated, with due cause, by either party giving to the other 12 months previous notice in writing”
As November 2017 drew to a close, then Permanent Secretary Colette Adams reminded LHI on October 3, 2017 of the Ministry’s intention to quit and surrender the premises.
LHI responded through a lawyer’s letter which stated that it had not received the notice to quit and that the notice now being shown to the company was unsigned and therefore could not be viewed as valid.
Additionally, LHI maintained that the relevant clause specified that the tenancy could not be terminated by the either party “without due cause,” notwithstanding 12 months’ notice in writing.
Adams wrote to the Ministry of Legal Affairs seeking advice on the way forward. The advice received, nearly a year later on September 2018, stated that “given that the Tenant has given notice, and has vacated the premises as at 31st day of August, 2018, no further payments of rental are contractually due, nor ought to be paid.”
At the time of the rental of the Charlestown Bond, it was also felt that the ministry had sufficient storage capacity at Diamond and Kingston.
