NPTAB never approved $630M drug purchase
Minister of Finance, Winston Jordan.
Minister of Finance, Winston Jordan.

THE National Procurement and Tender Administration Board (NPTAB) never approved the purchase of the more than $630M in “emergency pharmaceutical supplies” for the Georgetown Public Hospital (GPHC), the National Assembly was informed on Friday, confirming reports by the Guyana Chronicle that the purchase was made without

Minister of Public Health, Minister Volda Lawrence

knowledge and approval of NPTAB.

Responding to a series of written questions by People’s Progressive Party (PPP) Member of Parliament, Bishop Juan Edghill, on whether requests were made by GPHC for the waiver of tender procedures for the procurement of pharmaceuticals and medical supplies for the period January 1, 2016 to April 30, 2017, Minister of Finance Winston Jordan responded in the positive while providing a long list of requests.
In his response, however, Minister Jordan made it clear that the National Procurement and Tender Administration Board’s procedures are not waived. “The Board would take into account the most appropriate method of procurement as prescribed under the Procurement Act 2003, applying/recommending, in the first instance Open Tendering which is mandatory. The other methods are used when the appropriate conditions apply,” the Finance Minister explained.

Former GPHC CEO, Allan Johnson.

Other procedures include Restricted Tendering, Request for Quotations, and in the case of an emergency or in order to avoid catastrophic event – Single Sourcing. “The National Procurement and Tender Administration Board only grants approval to use an appropriate method of procurement and does not grant waivers,” Minister Jordan reiterated.
Notably, the Minister in his response, named 14 instances when approvals were granted based on requests from GPHC. It noted too that four requests were denied by the NPTAB. Those requests had to do with the procurement of the more than $630M in emergency drugs and medical supplies.

According to the written response supplied to the House, GPHC had made a request for the procurement of $2.9M in emergency pharmaceutical supplies from Health 2000 by way of Single Sourcing. It was explained that the items were required urgently. Additionally, the hospital indicated that “it was impractical to use the

GPHC Finance Director, Ronald Charles.

Open or Restricted Method of Procurement, due to the time required to utilise those methods of procurement.” That request was not approved by the Tender Board.
Secondly, GPHC requested permission for the procurement of emergency pharmaceutical supplies to the tune of $20.8M from New GPC via Single Sourcing. A similar explanation was offered but the request was denied.

The hospital had also requested the procurement of emergency pharmaceutical supplies via sole sourcing from Chirosyn Discovery at a cost of $2.1M but that too was denied. The final request by the hospital for the reporting period was made for the procurement of drugs and medical supplies from Ansa McAl at a cost of $605.9M via sole sourcing and like the previous three, the request was disapproved.
In another series of questions, Bishop Edghill asked whether similar requests were made by the Public Health Ministry and, while the Finance Minister responded in the affirmative and provided a list of the requests, none was linked to the controversial procurement of the more than $630M in emergency pharmaceuticals.

Top sources at the Public Health Ministry had told Guyana Chronicle that it was the hospital’s former Chief Executive Officer (CEO), Alan Johnson, and the Finance Director, Ronald Charles, who teamed up to sole source the drugs. Johnson was fired in June, 2017 by the GPHC Board of Directors following “a series of lapses,” which included the embarrassment of the Corporation before the Public Accounts Committee (PAC) on May 29.
According to a top source at the Ministry, following a meeting with the Public Health Minister, Volda Lawrence, in early February, during which the shortages of drugs were confirmed, the hospital’s Finance Director was summoned to a meeting. It is alleged, that during the meeting, Charles was instructed to meet with Berkley Wickham, NPTAB Chairman and explain the need for the fast-tracking of the pharmaceutical emergency supplies.

The senior hospital official, the source said, also needed clarity on whether there were provisions within the National Procurement and Tendering System for an addition to be made to the original bid document, given the fact that the suppliers had already bought the original document.
Additionally, the source said, Charles was constantly told by the senior official to proceed with the Emergency Supplies Bids in the “name of transparency, warning him, that any attempt to obstruct the process by annulment would cause ‘eyebrows to raise.’
But the pleas by the senior hospital official, the source contended, fell on deaf ears. “Unknowingly to his superior, Charles cancelled the bid and requested, as a matter of emergency that the drugs be sole-sourced. And, he had the backing of Johnson,” the ministry source maintained.

It is alleged that the Finance Director wrote the NPTAB Chairman requesting that the Emergency Supplies Bid Document be cancelled. In that letter, which was allegedly signed by the then CEO (Johnson), Charles sought to have the emergency drugs sole-sourced. Charles, Guyana Chronicle was told, proceeded to compile a list of the critical drugs which was subsequently given to four suppliers: Ana McAl, New GPC, Health 2000 and Chirosyn Discoveries, for the submission of quotations based on the document. Attempts, the source said, were made to have Minister Lawrence sign off on the documents but she had reportedly declined noting that there was an established system to be followed.

“It was the CEO who had prepared the letters for the four suppliers, telling them to proceed with the process,” the source pointed out.
According to the source, it was after the drugs were delivered at the end of February that a letter was sent to the NPTAB requesting that payments be made to the four suppliers.
When Minister Lawrence appeared before the Public Procurement Commission (PPC) in June, 2017 she denied approving the purchase of the drugs.

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