Specialty Hospital fallout… Opposition demands sacking of Health, Finance Ministers

APNU’s MP, Carl Greenidge

The Opposition is calling for answers following Tuesday’s announcement that Government is moving to terminate the US$18M contract for the construction of a specialty hospital at Turkeyen.
While the Alliance For Change (AFC) says that the situation clearly points to the urgent need for a Public Procurement Commission to oversee the award of contracts, the 26-seat A Partnership For National Unity (APNU), was even more blunt, demanding the removal of Health Minister, Dr. Bheri Ramsaran, and Finance Minister, Dr. Ashni Singh, for their roles in the project.
On Tuesday, Government announced that it is moving to terminate the contract of Surendra Engineering Company Limited (SECL), for fraud and delays.
SECL, Government said, tendered a fake security deposit from the Central Bank of Trinidad, one of the key requirements when tendering for a state contract.
According to AFC yesterday, it fully supports the Government’s decision to pull the contract. AFC even offered to support efforts to recover monies already paid over to Surendra Engineering.
“Guyana cannot afford to lose this money. What has happened in this case points clearly to the need for a Public Procurement Commission to better regulate and oversee the award of contracts.”
AFC said that it is good that Government has finally woken up, but the administration now has to do the right thing to become fully compliant with the country’s laws.
Meanwhile, Carl Greenidge, APNU’s Member of Parliament (MP) who is charged with finance, said he is not surprised at the turn of events.
“I was not surprised because the arrangement with the company was fraudulent in the first place. The regime has been hood-winking the Guyanese public over this contract since 2012. The APNU has consistently opposed the project on the basis of the fact that the procurement arrangements were irregular. The Vice-President of Fedders Lloyd, the Indian company that had bid lowest, practically accused the PPP Government of mis-representing what had happened and of breaking its own rules regarding procurement.”
Greenidge insisted that APNU’s initial decision to refuse release of the monies was because of what was recognized as a financial irregularity.
Lies?
“The Ministry claimed that money was needed for mobilization -an advance to buy some supplies/equipment and prepare the land- but the details provided showed that it was to have been spent on studies… As we investigated further, we unearthed more problems and irregularities, not the least of which was the dispute over the award of the main contract to a firm, Surendra Engineering, which is alleged never to have built a specialty hospital before.”
According to APNU, the dispute at one stage even involved the Indian EX-IM Bank.
“In spite of evidence to the contrary, the Minister denied the existence of any dispute. Nonetheless, Dr. Luncheon, the HPS, undertook in September 2012 to review the award of the contract. He did not. In the process and the debates in 2013, the House was typically treated to a tirade from the Minister of Health…”
While the project appeared to have been funded by the Indian Government for US$18M, Guyana went ahead in funding up front elements that did not appear acceptable.

Minister of Finance,
Dr. Ashni Singh

“It is also the case that many members of the public seemed to believe that this was an extension of the national health network that would make specialist services available to the Guyanese public. This is far from the truth.  The project is neither intended to provide services to Guyanese nor to employ Guyanese Doctors (and probably nurses).”
Greenidge said APNU is not opposed to a specialty hospital of this type which caters for US and international patients funded by foreign insurance companies, “but we believe that if Guyana funds and imprimaturs are required, the arrangements should be above board. Believing that we were refusing to fund more facilities for local patients, many people supported the Government.”
Greenidge made it clear that the finance minister is to answer for that when the Parliament re-convenes next month.
Blame Govt. too
“The Government’s recent revelation is a testimony to the complete irresponsibility and corrupt state of the Government. The monies, apparently fraudulently spent or not accounted for, need not have been lost if the regime had paid attention to the protests, respected the Assembly’s decisions and heeded the laws of the country.”
Greenidge said that as a critic he was even accused by an Ambassador and a High Commissioner of not having a defensible case for blocking this project “and I was blamed for blocking Guyana’s development – a blatant PPP line.”
Greenidge also argued that Surendra cannot be faulted alone. “There are two culpable parties, one of which is the PPP Government. The Government having unearthed their information and bearing in mind what I have said about the role of Government agents in the exercise, needs to let us know therefore, what it proposes to do apart from terminating the contract.”
The MP also called on Government to investigate Surendra over the supply of the US$4M pumps. It is unclear how much of the 14 pumps are in the country despite the contract being signed since 2011.
“I, as Chairman of the PAC (Public Accounts Committee), followed up fresh press revelations regarding the pumps, by calling on the Auditor General to undertake a special investigation into it. He undertook to report on it to the PAC in his 2013 report which is due to be presented in October. I look forward to that report.”