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FM
Former Member



Contract for emergency pharmaceuticals …GPHC Board to examine procedure used – Minister Lawrence
Mar 21, 2017 News 0


-insists she did not breach procurement laws
– says lawyer being engaged to deal with delinquent suppliers

By Kiana Wilburg

Minister of Public Health Volda Lawrence has attempted for a second time, to address perceptions that corruption surrounds the procedure used for the award of a recent contract for emergency pharmaceuticals.


Minister of Public Health, Volda Lawrence

At a press conference held at the National Communications Network (NCN) Channel 11 yesterday, Lawrence insisted that she did not breach the procurement laws, while noting that the Board of the Georgetown Public Hospital Corporation (GPHC) will be examining the route taken, among other matters.
At the briefing with the media which was broadcast live, the Minister also spoke to various issues, which included the state in which she found the health sector and the circumstances which led to a contract for emergency drugs.

CRISIS
In her opening statement, the Minister said that the GPHC, like the Ministry of Public Health, has been in a crisis for some time.
Lawrence said that on February 3, last, she requested a meeting with the Directors, Senior Management Officials and the Chief Executive Officer of the Georgetown Public Hospital, Alan Johnson. She said that the reason for the meeting was due to the fact that she received reports of a shortage of drugs at the hospital.
“I met with that team and during our discussions to ascertain why there was a shortage, I was told a few things. I was told that there were over 200 drugs which were in short supply. And there were several reasons for this: one was that the suppliers who should have been supplying drugs around that time and a few months earlier, some of them indicated their inability fulfill their contractual arrangements.
Another reason was that there were some suppliers who did supply a few items on their contracts but have since indicated their inability to supply the remaining drugs listed on the contract,” the Minister recounted
She said that the aforementioned, compounded by the fact that in the previous year, there were issues of short supply by some companies, led to a shortage of drugs in the hospital.
“Upon further questioning, I was also told that in order to ‘fill that gap’; the hospital was buying these drugs on a needs basis from the private institutions. And that was quite alarming to me, the fact that the importers could not supply based on their contract but they were supplying the private market,” Lawrence noted.
The Minister said that the situation put a strain on the hospital to be able to dispense services at the level it ought to; hence, it was in a crisis.
Lawrence said she intervened by having a stock count done. It was subsequently discovered that there were 287 drugs which were out of stock.

FILLING THE GAP
After noting the number of drugs that were unavailable, the Public Health Minister explained that the next stage was ascertaining how to fill the gap as quickly as possible.
“We further discussed what would be the mechanism to fill that gap, since 2017 tenders had not gone out, and even if it had gone out, the process in which, and the time span in which there will be a turnaround for the hospital to begin to receive those drugs, that would take somewhere between three to four and a possible six months…in them acquiring those drugs,” Lawrence said.
She told the media that she inquired whether it was possible to have the drugs delivered in a shorter time, and as such, a two-week period was looked at. Lawrence said she was advised, and it was subsequently decided, that the “short list of companies” could be looked at and those entities could be asked to bid on the list of items that were needed.
At the said meeting, Lawrence said it was agreed that companies which were being investigated and companies that did not fulfill obligations on prior contracts, would not be asked to bid for the two-week turnaround contract.
“I was subsequently informed that the documents were prepared and four companies had uplifted them, paid their monies, and they had bid on the list of items. The stocks were being supplied as per tender given and contracts made,” Lawrence noted.
The Minister said that she received a call one morning indicating that there was a contract for ANSA McAl Trading Limited in the sum of $605M. She said that she asked for the document to be pulled, as she wanted to know why the company was being awarded such a sum.
After making some checks with GPHC’s CEO, she was informed that the company is handling the “cold chain” aspect of the contract for emergency drugs. She was also told that the $605M cost took into account the fact that the drugs are coming by air and would be imported from Europe.
Lawrence said that the second day after clearing up the issue, the documents relating to ANSA McAl were in the media and that “the rollercoaster started.”

SOLE SOURCING
The Minister also cleared the air that there was no sole sourcing involved. Lawrence noted that four companies benefitted from the contract for emergency pharmaceuticals, but the only documents which were floating around in the media were those in relation to ANSA McAl. The other companies which benefitted included New GPC, Health 2000 and Chirosyn Discovery.
Lawrence said that New GPC’s bid was some $20M while the other two companies won smaller amounts.

BREACH OF PROCUREMENT
Since the matter of the contract for emergency drugs came to light, there have been accusations from various quarters that Lawrence breached the Public Procurement Act by trying to fast track the payment for ANSA McAl.
But Lawrence does not share this view.
Responding to questions from Kaieteur News, Lawrence said that one must appreciate the fact that at the time of the contract, there was no board in place. As such, it became the responsibility of the Minister to provide authorization on the matter.
She also stressed that the Minister is not involved in the procurement process. She said that she is only involved in declaring that there is an emergency and that there is a need to implement a mechanism to address the matter.
“I was instructed just like others, that you go to the shortlist of companies and you invite them to bid. The process following whatever, takes place at GPHC… the next safeguard is the National Procurement and Tender Administration Board (NPTAB),” Lawrence said.

CABINET’S ROLE
Questions have also been mounting lately on whether Cabinet was aware of the request for the $605M to be fast tracked for payment to be made to ANSA McAl. Lawrence was asked to speak to this matter and she noted that Cabinet was not aware of this since it did not leave NPTAB as yet.
Lawrence said that Cabinet is indeed aware that there was a shortage of over 200 drugs at the hospital. The Public Health Minister noted however that the “process” regarding filling the gap is not one for Cabinet.
Furthermore, the Minister was asked to say at which point Tender Board was asked to be part of the process she spoke of. Lawrence said, “I will not be able to answer that question…”
She noted, however, that a large quantity of the drugs has already been delivered, but no payments have been made.

DELINQUENT SUPPLIERS
As for those suppliers who are yet to fulfill their contractual obligations, the Minister said that moves are apace to engage a lawyer so that the matters can be dealt with.
She said that in many cases where the suppliers were unable to provide the drugs as stipulated in their contracts, there was no explanation given to the hospital as to what problems there were experiencing.
“There is no kind of paper trail in this regard for you to follow,” Lawrence added.

IRREGULARITY
Since a large quantity of the drugs has already been delivered to GPHC, Minister Lawrence was asked to state if it is the norm for supplies to be delivered before a contract receives the blessings of Tender Board.
The Minister said that this was one of her questions as well and as such, she has asked the GPHC Board to investigate the procedure that was taken.
The Minister assured that steps are also being taken to better the management and procurement system being used by GPHC.IMG_1590

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Replies sorted oldest to newest

"Importers could not supply based on their contract and yet were able to supply the private market" is quite alarming. These importers are left overs from the Burnham/Jagdeo bribe era. Time to nip it in the bud.

I wish the government would come out with their reports at the time they are being accused and not let these accusations drag on for months.

cain

The most corrupt is Guyana Health Services,that place need to be managed by people with fraud skills,billions of dollars are stolen.

Can any one verify if the system is computerized ??

Django
Last edited by Django
Django posted:

Guyana Health Services is the most corrupt service,that place need to be managed by people with fraud skills.

Can any one verify if the system is computerized ??

Wah r@ss you ah ask bai? Dem peeple fit dem computah wid magnet inside dem. When dem peeple leef at de end o' de day, dem computah ah fallah dem home. Handastan wah me ah seh?

FM

Two years and these DUMMIES suddenly realise there is a shortage of drugs. I believe she is talking to her GNI FILTH HEADS and local supporters. THe rest of us with a Pea brain and large knows better!!

Nehru
Nehru posted:

Two years and these DUMMIES suddenly realise there is a shortage of drugs. I believe she is talking to her GNI FILTH HEADS and local supporters. THe rest of us with a Pea brain and large knows better!!

No wonder you talk nuff shyte..is the Pee brain and large mouth talkin deh. 

cain

You are way beyond STUPID and brainless. Sometimes I wonder if you have any brain at all. You are one of those people who will enslave yourself because you simply do not know better.

Nehru
Nehru posted:

You are way beyond STUPID and brainless. Sometimes I wonder if you have any brain at all. You are one of those people who will enslave yourself because you simply do not know better.

You mean they would follow Mugabe?

FM
Django posted:

The most corrupt is Guyana Health Services,that place need to be managed by people with fraud skills,billions of dollars are stolen.

Can any one verify if the system is computerized ??

People with Fraud skills?? 

Bibi Haniffa
Bibi Haniffa posted:
Django posted:

The most corrupt is Guyana Health Services,that place need to be managed by people with fraud skills,billions of dollars are stolen.

Can any one verify if the system is computerized ??

People with Fraud skills?? 

Yes maam,

Skilled People to detect fraud so the thieves can be exposed.

Django
Last edited by Django
Django posted:

The most corrupt is Guyana Health Services,that place need to be managed by people with fraud skills,billions of dollars are stolen.

Can any one verify if the system is computerized ??

No Django, what is needed are competent managers who know what the hell they are doing.  In addition, what is also needed is an embedded but independent Internal Audit function to verify the process and test the transactions (procure to pay, receiving to Inventory to dispensing and all related reconciliations) so the interest of the tax payers are covered.

The two should and must always be separate and independent!

FM
Nehru posted:

Baseman, you seriously expect the PNC and the supporters to understand what you are recommending???

They know what needs to be done but execution is the problem.  I'm sure also, there are those who benefit from the weakness and stymie any attempt to strengthen the process controls and decision-making.

FM

Looks like Volda's strategy was to purposely create an artificial shortage so that there could be an excuse to bypass the procurement process and give the contract to ANSA McAl and get her kickback.  Would not be surprised if Harmon and Granger instructed her as to this strategy as they too would receive kickbacks to supplement their 50% raises. 

FM
Drugb posted:

Looks like Volda's strategy was to purposely create an artificial shortage so that there could be an excuse to bypass the procurement process and give the contract to ANSA McAl and get her kickback.  Would not be surprised if Harmon and Granger instructed her as to this strategy as they too would receive kickbacks to supplement their 50% raises. 

You may be on to something!

FM
ba$eman posted:
Drugb posted:

Looks like Volda's strategy was to purposely create an artificial shortage so that there could be an excuse to bypass the procurement process and give the contract to ANSA McAl and get her kickback.  Would not be surprised if Harmon and Granger instructed her as to this strategy as they too would receive kickbacks to supplement their 50% raises. 

You may be on to something!

Notice how the resident slop can carrier and his entourage are silent on this matter. They quietly acquiesce to the corruption under the PNC. No longer is d2 shouting about Amerindian rights and land titles even as today the Amerindian ancestral mining lands are being shared out to black small miners.  No longer is CaribJ, Cain and Django shouting corruption, they are too busy making excuse for the blatant thievery of the PNC. I suppose people will find a way of rationalizing and indulging the excesses of their party once they attain power. 

FM
Drugb posted:
ba$eman posted:
Drugb posted:

Looks like Volda's strategy was to purposely create an artificial shortage so that there could be an excuse to bypass the procurement process and give the contract to ANSA McAl and get her kickback.  Would not be surprised if Harmon and Granger instructed her as to this strategy as they too would receive kickbacks to supplement their 50% raises. 

You may be on to something!

Notice how the resident slop can carrier and his entourage are silent on this matter. They quietly acquiesce to the corruption under the PNC. No longer is d2 shouting about Amerindian rights and land titles even as today the Amerindian ancestral mining lands are being shared out to black small miners.  No longer is CaribJ, Cain and Django shouting corruption, they are too busy making excuse for the blatant thievery of the PNC. I suppose people will find a way of rationalizing and indulging the excesses of their party once they attain power. 

100 Percent accurate.

FM
Drugb posted:
ba$eman posted:
Drugb posted:

Looks like Volda's strategy was to purposely create an artificial shortage so that there could be an excuse to bypass the procurement process and give the contract to ANSA McAl and get her kickback.  Would not be surprised if Harmon and Granger instructed her as to this strategy as they too would receive kickbacks to supplement their 50% raises. 

You may be on to something!

Notice how the resident slop can carrier and his entourage are silent on this matter. They quietly acquiesce to the corruption under the PNC. No longer is d2 shouting about Amerindian rights and land titles even as today the Amerindian ancestral mining lands are being shared out to black small miners.  No longer is CaribJ, Cain and Django shouting corruption, they are too busy making excuse for the blatant thievery of the PNC. I suppose people will find a way of rationalizing and indulging the excesses of their party once they attain power. 

This is not the only place one debates salient issues. Actually, by virtue of its associated members one could say it is useless for such.

I am on SN everyday arguing amerindian rights and everyone's rights daily.

There is no necessity to be here doing that. Most of all no one expects you to be receptive to facts. If one writes it is for public clarification so you do not hold sway over the board and people looking in do not think you represent the typical guyanese. You are the warts on the backside of our body politic...bunch of useless ignars and intractable racists.

 

FM

SHE LIE .... 

In the wake of a sole sourced, supposedly “emergency” contract for $605 million of pharmaceuticals authorised by Public Health Minister Volda Lawrence, on information provided by the CEO of the Georgetown Public Hospital Corporation, stakeholders are demanding an explanation for the fiasco that has placed taxpayers’ dollars at stake.
Preceding the “emergency drug procurement” by the Georgetown Hospital this year, several tenders were cancelled for several reasons. The company that was handed the sole sourced $605 million contract, ANSA McAL, was one of those that were rendered disqualified during one of the cancelled tenders by the Georgetown Public Hospital in 2016. This was disclosed by a source close to the ongoing investigation into a number of the drug procurement scandals under the Public Health Ministry.
Public Health Minister Volda Lawrence in her explanation to the nation for her extraordinary intervention said the tenders were cancelled because some suppliers declared their inability to supply the drugs and because of some evidently collusion by some the officials of the Georgetown Hospital leaking information on bids to selected suppliers. On the specific “emergency contract”, Minister Lawrence explained she was not fully apprised of all the pertinent facts by the CEO of the Hospital.
In an attempt to follow the trail of the antecedent events that led to the extraordinary allocation to ANSA McAL, the chronological sequence was compiled.
Guyana Times was told that the Georgetown Hospital advertised for Procurement of Medical Supplies on October 2, 2016, with a tender deadline of November 1, 2016. Bids duly submitted on November 1, 2016 but this tender was cancelled.
According to the source, the Georgetown Hospital then advertised for procurement of pharmaceuticals on November 5, 2016. The tender deadline was originally scheduled on November 22, 2016, but this was postponed to December 13, 2016. Bids were eventually submitted on December 13. The entire tender was cancelled.
Notably, ANSA McAL, the source pointed out, would have been disqualified because at the opening, it was announced that they had bid security issues.
This publication was told by a well-placed source that it was subsequent to this that the Georgetown Hospital arranged for a selective tender for ‘emergency pharmaceuticals’ on February 2, 2017. The tender was cancelled verbally on February 12 and in writing on February 14.
Additionally, the Georgetown Hospital arranged for selective tender for procurement of medical supplies on February 3, 2017. According to the source, the tender deadline was postponed to February 14, 2017. Bids were submitted on February 14 but no awards or pronouncements were issued as yet.
This is therefore presumably still under evaluation, more than a month later.
In light of the cancelled tenders and the worsened drug crisis at the Georgetown Public Hospital, the Minister intervened and ordered that shortlisted – not pre-qualified – contractors be contacted and asked to supply the pharmaceuticals in the shortest time possible.
She explained that had the normal procurement process route been taken, drugs would have arrived until several months after.
On February 12, a request was made for items in stock in the country relative to the list of pharmaceutical and medical supplies (392 items) contained in the cancelled emergency tenders above.
According to a source, one of the shortlisted contractors, NEW GPC submitted three quotes (not bids) for a total of 194 items and was subsequently asked to supply a few items to the valued $20.8 million.
When contacted on the issue Tuesday this publication was told that the company has since completely fulfilled that order.
NEW GPC also pointed out to this publication that it has already made public its position on the matter and wishes not to make any futher comments.
It is unclear what process was used to award ANSA McAL a $605 million contract to supply drugs.
When asked, the Minister claimed ignorance. Lawrence claimed unawareness of the procurement process embarked upon after her intervention; she was also unable to pinpoint if and how the National Procurement and Tender Administration Board was involved and what method was used to determine that ANSA McAL was best suited for the $605 million contract.
Minister Lawrence had disclosed in a statement to the media that ANSA McAL donated four refrigerators to the Georgetown Hospital.
In a live press conference on Monday, the Minister saved herself from the scandal, claiming that she was surprised to see that ANSA McAL was awarded a $605 million contract.
The Minister said she had written the Chairman of the Georgetown Hospital Board, ordering an investigation into the entire situation.
Management of the Georgetown Public Hospital Corporation has been accused of deliberating creating an emergency situation in order to sole source drugs from its preferred supplier. Within the last four months, it has cancelled or delayed four of its five public tenders, thereby creating a situation wherein there was a massive shortage of pharmaceuticals.
In a letter dated February 28, 2017, the Hospital’s CEO, Allan Johnson, thanked the Public Health Minister for authorising the procurement of medical supplies from ANSA McAL to the tune of $605,962,200, even though local firms could have supplied the same quantity and quality of drugs at cheaper prices.
Questions are now being raised regarding what process was used to determine that ANSA McAL should receive the contract and why were local firms sidelined.

FM

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