Govt releases controversial bond contract
Public Health Minister Dr. George Norton
Public Health Minister Dr. George Norton

….PPP ups call for its revocation

The Government of Guyana (GOG) on Thursday made good on its promise to release the contract between the Ministry of Public Health and Linden Holdings Inc. for the controversial Sussex Street bond but the opposition People’s Progressive Party (PPP) maintains its call for the revocation of the deal. The three year contract was entered into on June 1, 2016 and has the option of renewal for an additional three years at the end of June 2019. According to the contract, rent has been set at $12.5M monthly and the Ministry of Public Health is responsible for the payment of Value Added Tax (VAT) to the Guyana Revenue Authority (GRA) on the property.
The contract may be terminated with due cause by either party twelve months ahead once notice is provided in writing. Additionally, the Ministry of Public Health has agreed to pay $37,500,000 representing two month’s rent in advance together with the equivalent of one month’s rent as a security deposit which would be refunded at the end of the tenancy minus deductions made by Linden Holdings for all or any damages occasioned by the Ministry of Public Health.

Opposition Leader, Bharrat Jagdeo
Opposition Leader, Bharrat Jagdeo

The Ministry of Public Health is also responsible for the maintenance of aesthetics of the premises pay the monthly utilities on the premises which include the Guyana Power and Light (GPL), the Guyana Water Incorporated (GWI) and the Guyana Telephone and Telegraph Company (GTT). Moreover, the Ministry of Health is responsible for its own security arrangements and is mandated by the contract to permit the Landlord and its agents and workmen access to the premises “at all reasonable times” after 48 hours’ notice would have been provided in writing by the Landlords. Entry by the Landlord or his agents is relative to the fixtures and fittings on the building or the inspection of works.
Meanwhile, the contract warns the Ministry of Public Health against using the premises for “any purpose which is not permitted” under the Landlord and Tenant Act. However, the contract notes that the premise is to be used “for the purpose of a professional office”.
Linden Holdings by virtue of the contract is mandated to pay all present and future rates, taxes, assessments payable for the property, to provide 24 hours security for the life of the lease, water, electricity, standby generator with over 45kva and auto transfer switch and general maintenance of all appliances in the buildings, to provide a walk-in freezer and 16 stand-up refrigerators, pallet racks as needed for storage on both levels, electric fork lift with 4000 pounds plus battery and charger, central air conditioning on both levels and back up of 12 split air conditioning units with 18,000btu. Additionally, the Landlord reserves the right to take possession of the property should the Ministry of Public Health default in its payment of rent for 21 days.
Scandal
The provisions of the contract as outlined above however do not sit well with the opposition People’s Progressive Party (PPP). The party in a statement on Thursday night said “The recent release of an incomplete unsigned contract (Agreement of Tenancy) between the Ministry of Public Health and the Linden Holdings Inc., to the Parliamentarians, is adding more shock waves to what is now being popularly called the “drug bond scandal.”
The party said the contract was not meant for a bond but a professional office and noted too that the conditions of the contract for the Landlord are “exceedingly generous”. The contract is for three years and carries with it a 12 month notice of termination. Additionally, the PPP said the statements by Minister of Health Dr George Norton that the bond is PAHO/WHO compliant was mentioned nowhere in the agreement. The Health Minister will be submitting his written apology to Speaker of the National Assembly Dr Barton Scotland today.
“This has been carefully orchestrated to coincide with the PNC Congress which is commencing on the afternoon of August 26th, 2016. One can expect the shedding of “crocodile tears” but this is insufficient, unacceptable and a downright media gimmick,” the PPP said in its statement. The opposition party said the coalition government has moved into “full PR mode” and are attempting to cover up acts of corruption. The government has repeatedly said that the New GPC, the pharmaceutical company that stored drugs for the government in the past was demanding $19M for its 70,000 square feet bond.
However the PPP maintains that the $19M demanded by New GPC for its bond is less than which has to be paid to Linden Holdings all together. “This scandalous corrupt act demonstrates the level of petulance, fickleness, lack of transparency and accountability, and irresponsible use of taxpayers’ money,” said the PPP while noting that “nothing short of the revocation of this contract will suffice.”

SHARE THIS ARTICLE :
Facebook
Twitter
WhatsApp

Leave a Comment

Your email address will not be published. Required fields are marked *

All our printed editions are available online
emblem3
Subscribe to the Guyana Chronicle.
Sign up to receive news and updates.
We respect your privacy.