Corruption in drug procurement

While Government continues to defend sole-sourcing that allows the New Guyana Pharmaceutical Corporation (New GPC), to import billions of dollars worth of pharmaceuticals the spate of corruption and wastage is cause for concern.
This notion was expressed by A Partnership for National Unity’s (APNU), Dr George Norton, who is also the opposition party’s shadow Minister of Health.

Dr. Ranjisinghi
‘Bobby’ Ramroop

Potential distributors are at an absolute disadvantage.
New GPC, which is controlled by Dr. Ranjisinghi ‘Bobby’ Ramroop, has been at the centre of criticism as Government’s choice for the distribution of medical supplies to state-owned health institutions over the past several years.
Dr Norton said that potential distributors are at an absolute disadvantage due to the government practice of overlooking the bidding process.
He explained that other companies with the capability to supply the public health sector with drugs are being disregarded.
“We have companies like International Pharmaceutical Agency, (IPA), Twins Manufacturers and other well known agencies have been inconvenienced by the prequalification methodology practised by the administration.
Some of these companies have cried foul at the government for allowing New GPC to be the sole supplier of the nation’s drugs to public health facilities.
The other problem is that the money is paid upfront to New GPC for the supply of drugs and there are shortages. Just recently we had an insufficiency of essentials such as saline drops and infusion liquids. These were lacking at the GPHC.”
“The effects of this practice are that the ordinary man on the street has to pay a higher price for medication, which was the case of with Ketoconazole and other drugs.”
Wastage
Earlier this year, the Auditor General report focused on multi-million-dollar deficiencies in the procurement and supply of products from the New GPC. Shorter bank guarantees than stipulated under the law and sloth in delivery were among the issues highlighted.
The New GPC Inc. has been awarded the bulk of contracts worth billions of dollars to supply drugs to the Georgetown Public Hospital Corporation (GPHC) and the Ministry of Health (MOH).
In 2012, a total of $49.498M of expired drugs was dumped by the Georgetown Public Hospital Corporation (GPHC). The issue was reported in the Auditor General’s Report.
Dr Norton said that millions of dollars worth of expired medical supplies are repeatedly dumped by health facilities across the country.
“What happens is that the drugs have a short shelf life, which is the main reason for the wastage.”
Government/ New GPC
Earlier this year, Head of the Presidential Secretariat, Dr. Roger Luncheon, sought to explain Government’s stance on the subject.
He said that at no time are pharmaceuticals procured without the procurement agency’s knowledge on the competitive prices for the items.
He said that anytime a local provider is “selected” that provider’s submission has to be competitive in relation to international providers that actually provide drugs to Guyana and other developing countries.
The agency he referred to is the IDA Foundation, the world’s leading not-for-profit supplier of affordable pharmaceutical products.
This Luncheon says is what makes the procurement of medical drugs from New GPC not sole sourcing. He said that matter of comparing prices is a “competitive component of the procurement process.”
At another forum, Junior Finance Minister, Juan Edghill explained that New GPC had been prequalified to supply drugs to the Ministry of Health for a period of three years between 2010 and 2013.

Dr. George Norton

Edghill had said that the Ministry was gearing to invite suppliers to be prequalified for another period in the future.
However, a few days ago at the launch of Health Vision 20/20, President Donald Ramotar publicly blasted the health sector over the incidence of shortages of drugs, and wastage of pharmaceuticals at hospitals and other health facilities, nationwide.
“We spend billions of dollars every year to buys drugs yet we are confronted with shortage of drugs at health facilities nationwide.
“Millions of dollars of expired drugs are written off and dumped in large quantities…This is totally unacceptable.”
The President also questioned whether the Ministry of Health has records of how pharmaceuticals should be purchased and used.
“Don’t we have an idea how drugs are being used, how they are being purchased?”
Ramotar said that he had raised the issue with the Health Minister and the Permanent Secretary following complaints by ordinary citizens about shortage of drugs.
Procurement process /the opposition
Earlier this year, investigations conducted by Political opposition, Alliance for Change (AFC), revealed the bidding process for procurement of drugs to the health sector has been further sidelined by the government to allow New GPC the opportunity to be the sole supplier of drugs to the nation’s public health facilities.
The AFC had demanded answers to queries on Government policies in regards to the procurement of medical supplies.
Leader of Alliance for Change, Khemraj Ramjattan, said that the investigations pointed to the sole distribution by New GPC worth $4 billion. This sum was approved in this year’s national budget for the purchase of medical supplies.
“We want to know whether the procurement process is not applicable to the medical supplies anymore, notwithstanding that the discovery was made after it was noticed that “there has not been any advertisement to bid or tender for medical supplies in the daily newspapers.”
“We understand that New GPC has been delivering medical supplies to hospitals, and Government health institutions throughout the country,” Ramjattan disclosed.
APNU’s Dr Norton said that contrary to Government’s belief, the New GPC does not have the capacity to supply the quality and quantity of medications countrywide.
“We are still in the situation where health centres are without their quota of basic drugs. We are encountering piles of expired drugs during our examinations
“Patients are not getting the prescribed drugs at the public health facilities; they have to purchase them from private pharmaceutical agencies,” he said.
According to Dr. Norton, other local companies should be given the opportunity to bid for the supply of drugs to public health facilities. That would enable Government to acquire medical supplies at competitive prices. With the savings earned much needed equipment could be procured for the Georgetown Public Hospital Corporation
The single source method for the procurement of goods is set out in Section 28 of the Procurement Act 2003.
For single sourcing to take place, it must be a case where the goods are available only from a particular supplier or contractor, or a particular supplier or contractor has exclusive rights with respect to the goods and no reasonable alternative or substitute exists.