AFC forces $0 funding for Specialty Hospital

– with APNU’s support

An artist’s impression of the 250-bed Specialty Hospital to be constructed at Liliendaal, East Coast Demerara

– failed bidder Fedders Lloyd is Ramjattan’s client

By Sabatini Daniels

The combined opposition Thursday evening reduced the $1.25 billion allocation for the Specialty Hospital to $0 in the first of a series of  budgetary cuts it has proposed for this year’s national budget. The opposition had given warning of this since last week, but had cautioned that if sufficient answers were provided by the subject minister, then it would have reconsidered its position.

 The motion to remove the allocation was tabled by Alliance For Change (AFC) leader Khemraj Ramjattan, who is the lawyer for Fedders Lloyd, one of the companies which failed to win the bid for the Specialty Hospital.  Questions have been asked as to whether or not the move to cut the funding was aimed at appeasing his client.

Photo showing the commencement of the land preparation process

 The government had allotted the sum of $1.25 billion in the 2013 national budget towards the project; however, it was slashed during the consideration of the estimates owing to what the opposition deemed as unsatisfactory progress and accountability.

This was after a period of uproar in the National Assembly over an A Partnership for National Unity (APNU)  motion to cut the allocation to one dollar was overruled on the basis that the one clear day notice which the party was supposed to give had not passed as the standing order requests. Subsequently, Ramjattan reminded the assembly  of the motion his party had tabled since Friday last with intention to cut the entire amount earmarked.  The House then voted, approving the motion to cut  the entire amount 33-32.

All will benefit

APNU’s Member of Parliament Annette Ferguson had raised questions on works done so far at the  hospital site to date and total cost to date. Health Minister  Bheri Ramsaran defended the project, explaining that works done on the site thus far amounted to $4.3 million, which included site preparation, preliminary site clearance, reinforced concrete cover, reinforced concrete drain, rehabilitation of an eastern parameter fence and some other work.

Health Minister Bheri Ramsaran

Ferguson then said that she visited the site last Saturday and met a worker who told her that there was some dispute between the local contractor from G Bovell and the ministry with regards to the project; hence, she called on the minister to come clean with regards to the project.  Dr Ramsaran, who stood up to clear the air, noted that he could hear the “impertinence” in Ferguson’s voice, adding that he doesn’t know where she got her information from.

“When I visited the site, I go incognito and I spoke to workmen too who would not have a clue… of what is being executed… so I do not know which authority or youngster you refer to.” He noted that what he is aware of is that the company is having some difficulties with meeting timelines, “there were continuous deferment and some note of lack of capacity.”

The minister said the ministry and the company are in the process of negotiating the way forward on the contract, adding that the company was paid $52.3 million for mobilisation purposes.

He underscored the importance of the project, explaining that it would seek to benefit all Guyanese since the doors would be open to everyone regardless of who they are.”We need to seriously and sympathetically consider what the $1.25 billion is for,” he emphasised.

Alliance For Change leader Khemraj Ramjattan

The minister disclosed that $746 million for design and survey work on the hospital,  which was sourced from the India EXIM Bank in December 2012 as a loan, was released. As a result, AFC MP Moses Nagamootoo, who rose to the floor, said his party intends to be judicious and act in the national interest. “It is a serious matter… which has to do with the people’s money…. It requires fiscal responsibility… “

Consequently, Finance Minister Dr Ashni Singh stood to further explain the matter, adding that there were two different contracts for the hospital, one for site preparation which was being funded locally and went to G Bovell Construction and one for the actual construction which went to Surendra Engineering and was being funded by the EXIM Bank of India.