New criteria tailor suit to favour New
GPC
…opposition unable to prevent its implementation – Granger
The Ministry of Health has clearly devised a mechanism whereas New Guyana Pharmaceutical Corporation (GPC) will be the only supplier of drugs to Government.
New GPC owner Dr Ranjisinghi ‘Bobby’ Ramroop
This is according to Leader of the Political Opposition, Brigadier David Granger, who in an invited comment yesterday, said that based on the changes made to the prequalification procedures by the Ministry of Health; it creates a situation where rivals of New GPC will not be able to meet the criteria.
Under the revised criteria for the prequalification of suppliers of drugs and medical supplies they must demonstrate a gross turnover of $1B (US$5M) and net assets of $500M (US$2.5M).
The Ministry’s criteria said that maximum score will be awarded to applicants which have paid $50M in corporate taxes annually.
The company with 50 or more employees, and warehousing capacity of 30,000 square feet in the city, will also gain an edge.
New GPC is owned by Dr Ranjisinghi ‘Bobby’ Ramroop, former president, Bharrat Jagdeo’s best friend and is the only supplier, locally, with its own bond of that size.
According to the revised prequalification criteria, maximum points will also be awarded in the evaluation process to the applicants who have been supplying Government more than seven years without any negative reports.
Brigadier Granger said that what the Ministry has done is to device tailor-made criteria meant to negate other competitors so that New GPC will be used as the sole supplier of drugs.
The Opposition Leader conceded that the parliamentary would be unable to prevent the implementation of this strategy, given that it is a Ministerial Order.
He did say that with the coming into being of the Public Procurement Commission what they might be able to do is address procurement at that time.
Granger’s sentiments come on the heels of recent criticism of the prequalification criteria, by Alliance for Change (AFC) Leader Khemraj Ramjattan.
Ramjattan, in an earlier interview published by Kaieteur News, had said, “Could you imagine the resultant impoverishment of the treasury and corresponding enrichment to New GPC! This is bloody larceny, but in the eyes of past and present PPP administrations it is economics. The little boy who picks your pocket for a $2,000 would have to go to jail.
“But this big company will be extolled as virtuous when over $2B is what it profits in a roughly similar activity.”
The last pre-qualification period for suppliers of drugs and medical supplies expired on December 31. The Ministry of Health had been looking to select the suppliers for the next three years.
A pre-qualified contractor is automatically considered when it is time to order critical or emergency supplies.
Former President
Bharrat Jagdeo
With billions of taxpayers’ dollars at stake, independent suppliers and the Opposition have time and again been accusing Government of favouring New GPC, a company whose principal, Bobby Ramroop, shares close ties with former President Jagdeo.
The company has been benefiting from billions of dollars annually, controlling supplies of up to 80 per cent of the drugs purchased by the Georgetown Public Hospital Corporation (GPHC) and the Ministry of Health.