GPHC board says CEO ‘acted recklessly’

AN inquiry into the Georgetown Public Hospital Corporation (GPHC)’s $632M drug purchase has found that the Public Health Minister was not to be blamed for making such a decision.
What the investigation has in fact found, was that while the ultimate decision to purchase, which constitutes a breach of standard operating procedures, was the minister’s, the then Chief Executive Officer (CEO) of GPHC, Mr Allan Johnson, should have known better.
The findings have revealed that after a drug shortage was reported at the medical facility, Minister of Public Health Ms Volda Lawrence met with management and asked that a plan be devised to alleviate the situation.

Subsequently, a plan of action was developed and presented to the minister by the GPHC’s finance director.
That plan of action included determining the availability of drugs from the Pan-American Health Organisation (PAHO), the Materials Management Unit (MMU), and local suppliers; obtaining quotations from suppliers; sending an evaluation report to the National Procurement and Tender Administration (NPTAB) for approval, followed by the award of tender.
What transpired, however, was that rather than follow the prescribed plan of action to the letter, the CEO, Mr Johnson, wrote NPTAB seeking approval for the contracts after the corporation had begun receiving pharmaceuticals from the suppliers.
The suppliers at reference were ANSA McAL, from which was sourced $605M worth of pharmaceuticals; the New Guyana Pharmaceutical Corporation (GPC), from which was sourced another $20.8M worth; Health2000 $2.9M; and Chirosyn Discovery $2.1M.

Upon learning what had happened, the GPHC Board, which conducted the inquiry, said while it was “shocked and disappointed” that the GPHC had breached the law, there was no information to suggest that the minister had given any instructions to bypass any procurement procedures or laws.
The oversight body went on to state that senior staff of the Finance Department had an “ethical and professional” duty to properly advise the then CEO of what the standard procedure was, since the matter was within their realm of expertise.

“Johnson had been known to trust and depend on his officers to do the right thing, and it is regrettable that they failed him in this instance,” the board said in a statement.
Having said that, however, the board did not exactly exonerate Mr Johnson, as it went on to say that ultimately, the power was within his judgment and signature, and that “he acted recklessly.”

Further, it was pointed out that after the board was installed and held its first meeting on February 22, 2017, the then CEO failed to mention this matter to the directors.
The board, however, said that GPHC management and staff have been cooperating fully with the Public Procurement Commission (PPC) in their ongoing investigation.