18 companies in line to supply drugs

– gone are the days when New GPC enjoyed monopoly – Public Health Minister

By Kiana Wilburg
For over a decade, only one company enjoyed the lion’s share of the contracts for drugs and pharmaceuticals in Guyana under the previous administration. That entity was none other than New GPC owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, the best friend of former President Bharrat Jagdeo.

Minister of Public Health, Dr George Norton

But Public Health Minister, Dr. George Norton made it clear yesterday that gone are the days when New GPC enjoyed that monopoly.
He made these statements during the 2015 budget debate.
The Minister informed fellow parliamentarians that 18 other companies were recommended by the Guyana Pharmaceutical Association to participate in what will now be a fair and transparent process of tendering for drug contracts.
Norton said that the Ministry of Health will be committed to ensuring that the access the Guyanese population has to medication and medical supplies is improved.
During his presentation, the Member of Parliament revealed that New GPC had a contract from the PPPC Government to receive 100 percent payment up front – before delivery.
Norton said that on more than one occasion, the company received monies for medication it never supplied. He said that this can be substantiated in the Auditor General’s Reports over the years.
“Yet they (the previous administration) continued with the monopoly. Gone are such days. We will do everything possible to put an end to the hundreds of millions of dollars of the poor Guyanese tax payers’ money that is wasted away in the form of expired drugs,” expressed the Health Minister.
Junior Finance Minister, Jaipaul Sharma had disclosed that his team of auditors is already conducting a forensic audit into the Ministry of Health and the Georgetown Public Hospital Corporation (GPHC) to once and for all settle the decade-old controversy over the procurement of drugs and pharmaceuticals.
Prime Minister Moses Nagamootoo in a brief interview had said that the forensic audit into the GPHC will see an investigation into past procurements, expired drugs and those companies that are part of the “procurement gravy train including New GPC.”
Over the years, A Partnership for National Unity and the Alliance for Change have spoken against the award of billion-dollar drug contracts in favour of the New GPC owner.
They have also spoken about the manner in which the previous administration changed the laws to ensure that Ramroop’s company would be used for the sole sourcing of drugs.
When it served in the opposition, the current administration had lashed out at the PPP/C for granting billions of dollars worth in contracts to New GPC during the lead up to the May 11 National and Regional Elections.
On May 8, last, New GPC uplifted the entire billion-dollar cheque for a drug contract awarded to that company. That was the last working day before General and Regional elections. The payment arrangement was also contrary to all the country’s procurement procedures. Traditionally, 25 per cent of the contract is paid up front.
AFC Leader, Khemraj Ramjattan, had described the situation surrounding the health contracts and New GPC as nothing but “kick-down-the door banditry.”
Foreign Affairs Minister, Carl Greenidge, had said that he found the actions of the previous Government in the run-up to the May 11 polls, to be evidence of how “evil, corrupt, greedy and ruthless” it can be.
Greenidge had said that the PPP/C had given so much to Dr. Ramroop by breaking the laws that it had made him a king in his country.
“Another critical point we need to pay attention to, and that is the fact, that Ramroop was given the opportunity to supply almost 85 percent of the country’s drugs for nearly 20 years. Considering the empire he has been able to build through the sole sourcing of drugs, we see clearly, too, for how long value for money in the health sector has been evaded.”
It is estimated that over the past seven years more than US$200 million was spent on drug purchases, with the lion’s share going to New GPC.
Greenidge had said that the control Jagdeo gave Ramroop over the health sector was not only unhealthy for the competitive market, but it also marred attempts at transparency and accountability.
The politician had reiterated that through the sole sourcing of drugs, “Jagdeo and his government did not only ruthlessly rob the nation, but invited his best friend to help to further corrupt the system and to rob the poor people at the same time.”
The pre-qualification criteria which were used to allow New GPC to be chosen, had also been described by the government as being “unreasonable” and tailor-made to have that company secure the status.
The previous list of companies that were pre-qualified to supply drugs expired since December, last. Prior to inviting submissions for another round of pre-qualification, the PPP/C revised the criteria. This led to the accusations that it was positioning New GPC to be the only company meeting the requirements to win out.
Under the revised criteria, bidders had to demonstrate a gross annual turnover of US$5 million and net assets of US$2.5 million.
Another criterion was that maximum score was to be awarded to applicants who would have paid $50M in corporate taxes, annually. Additionally, the company that has 50 or more employees, and warehousing capacity of 30,000 square feet in the city, will also gain an edge.
New GPC has been a feature in the Auditor General’s reports over the years with several instances focused on multi-million-dollar deficiencies in the procurement and supply of drugs under the previous administration.