New GPC vs K-News New York libel suit…US judge’s order exposes New GPC deception

A New York court case sparked by investigative reports of the Government’s questionable purchase of drugs from New GPC,

New GPC principal, Dr. Ranjisinghi “Bobby” Ramroop

has taken a new twist with that company at first refusing to disclose information about its clients.
But a judicial order to New GPC to answer the deposition led to some startling disclosures.
The excuse for its initial refusal was that it feared victimization from Publisher of Kaieteur News, Glenn Lall.
One question asked New GPC to state how seriously it was affected by the publications, and how “seriously injured and prejudiced in its business reputation” as a result of the publications.
The company said that its 90-year-old brand of high quality products for the Guyanese, Caribbean and North American markets has been tainted by “false allegations of unscrupulous practices. Plaintiff’s business reputation was prejudiced as a result of frequent publishing by defendant that plaintiff benefitted from cronyism and was guilty of price gouging.”
New GPC said that the frequent publication of allegations of cronyism was even the subject of debates in the letters to the editor published on several occasions.
New GPC was asked how it was “seriously injured and prejudiced” in its relationships with its existing customers.
The company replied that sales in several international markets recorded a drop in 2012. “Anecdotal reports both locally and in some territories indicated reduction of sales of New GPC’s products as a result of the Kaieteur News’ negative publicity.”
But when asked to provide the names, addresses and contact information of those customers with whom relationships were seriously injured and prejudiced, the New GPC story fell apart. There were no customers.
New GPC in answering, said: “Plaintiff is not aware of any customer it has lost due to the defendant’s articles. In the event any such information is discovered, it will be produced.”
Asked to state how New GPC has been seriously injured and prejudiced in its efforts to attract new customers, Ramroop’s company said that the articles of Kaieteur News caused declines in sales in most of the its markets.
However, New GPC was unable to support its claims that it lost out on new customers.
New GPC was also asked to provide “names, addresses and contact information of those potential new customers whom

Former President Bharrat Jagdeo

plaintiff’s efforts to attract have been seriously injured and prejudiced…”
New GPC said that “after a diligent search, plaintiff has found no records of any such potential new customers, and has been able to find no information responsive to this Interrogatory. If information is discovered, it will be produced as soon as it is discovered.”
New GPC filed the case in August 2012 in New York, and is asking for more than US$1M in damages and costs. A similar case has been filed against the Guyana edition of Kaieteur News.
New GPC, whose front man is Dr. Ranjisinghi “Bobby” Ramroop, a close associate of former President Bharrat Jagdeo, claims that its reputation was badly damaged by reports dated 2011, in the New York edition of Kaieteur News, which questioned the high cost of certain drugs being supplied.
New GPC is also claiming that it lost customers, locally and internationally, because of the bad publicity.
Jim Sullivan and James Corring, lawyers for Kaieteur News in New York, had tabled a number of questions to New GPC, by way of a deposition, asking for that company to provide details of the customers it lost, among other things to justify its claim for damages.
At first, New GPC moved to block the series of questions on the grounds that they had no bearing on the case. The lawyer for the New GPC, Sam Beckerman, then asked the court to rule that any information it provided be kept confidential. It also asked that it not be compelled to answer the questions.
It claimed that it feared the answers will be used by Lall to target and hurt its customers.
However, the New York court, presided by Judge Joan Kenney, nixed the excuse, denied the request and last month ordered the New GPC to produce the answers within 20 days.

Kaieteur News’ Publisher, Glenn Lall

The political opposition had been incensed over the arrangements between Government and New GPC and its other sister companies, especially over the seemingly cosy relationship in the purchasing of drugs.
For this year alone, Government is set to spend upwards of US$25M for drug purchases. Last year, Guyana spent US$23M.  The drugs bills would represent half of the total Ministry’s budget of US$50M.
Drug purchases have accounted for a large chunk of the Ministry of Health’s expenses with New GPC in 2011 being awarded almost 80 per cent of the US$65M expended.
The Opposition parties in the National Assembly have expressed alarm over the developments with members of its Public Accounts Committee arm, clashing during examinations of the 2010 Auditor General’s report.
Hotly debated also, was how the Ministry did not follow competitive bidding processes and as such allowed US$6M in contracts to be granted to New GPC to deliver drugs in 2010.
Last December, the pre-qualification period expired and Government immediately moved to invite companies to apply.
However, local suppliers and the Opposition again criticized the “unfair” conditions which included among other things, large spaces for storage and evidence that it supplied hundreds of millions of dollars in drugs. They said that the conditions were specially created for Ramroop, Jagdeo’s best friend.
The conditions, in effect, tipped the scales in favour of New GPC.