– Gov’t says needs Sussex Street bond because Diamond bond not ideal

MINISTER of Public Health Dr George Norton is expected to Friday deliver a written apology to Speaker of the National Assembly for misleading the House on the contract for the rental of a pharmaceutical bond on Sussex Street, Georgetown.It is unclear if Dr Norton will also hand over all documents related to the contract to the Speaker at the same time.

Opposition Leader Dr Bharrat Jagdeo Wednesday suggested that Norton was ordered to apologise in order to save him from Parliamentary sanctions.
But the Opposition is not taking the matter that lightly.

“He lied to the Parliament so he has to face the consequences in Parliament,” Jagdeo declared at a press conference at the headquarters of the opposition PPP in Georgetown.

On August 8, the Minister told the House that a contract was signed with Linden Holdings Incorporated, owned by one Larry Singh, to rent the storage bond on Sussex Street in the city for $12 million a month; the first month’s rent was handed over, along with an additional $13 million, which the Minister said was for a security deposit.

The Minister told the House that the bond was certified by an agency under his Ministry and that it had met international standards – standards of the Pan American Health Organisation/World Health Organisation (PAHO/WHO).
He said that the contract with the company was decided on as it was cheaper than what was being offered by the New Guyana Pharmaceutical Corporation.
It is unclear what aspects of his statement Minister Norton will be apologising for.

Mr Jagdeo described the sub-committee appointed by Cabinet to review the decision of the Ministry of Health as a “cover -up committee.” The Cabinet had appointed Prime Minister Moses Nagamootoo, Minister of State Joseph Harmon and Minister of Natural Resources Raphael Trotman to review the contract.
The committee was set up a day after Dr Norton’s revelations in the National Assembly.

Jagdeo believed that the real test would be “whether they are prepared to terminate this contract and to give us the real details.”

He said an external investigation should be done as it must be made known “who directed them to Larry Singh – who has never stored drugs before.”

According to the report of the sub-committee, the contract was signed on July 20, 2016 following a demand by the New GPC Inc. for US$137,533.32 (at a rate of US$45,884 per month) for the months of March, April and May 2016.

Cabinet had decided to end its arrangement with New GPC and approved the lease of a “suitable warehouse.”

The Sussex Street bond was secured at a monthly rental of $12,500,000.
According to the report, Norton “was acting in accordance with a Cabinet directive when he tasked the Ministry’s staff to secure a suitable bond.”
Government argued that while its storage facility located at Diamond, East Bank Demerara (EBD) has space it is not ideal.

“It is unadvisable to locate all supplies in one location as a fire or some other natural or unnatural disaster can have calamitous consequences to the national health care system,” the report added.

The report noted that the location of the government bond can affect distribution given the consistent travel woes along the EBD roadway.

“The general terms of the lease are not altogether unfavourable to the Ministry of Public Health as the lessor is obligated by the terms of the agreement to maintain the facility at a standard.

“However, the agreement could be strengthened with more specific terms that address insurance, maintenance,” the report of the sub-committee stated.

Additionally, the report noted that the rental sum of $12,500,000 should be re-assessed as it is “likely that a similar facility could be maintained at a lower rate.”

If there is a refusal by Linden Holding to re-negotiate it has been recommended that government terminates the contract and build and operate its own facilities.

Dr Norton is to submit his apology to the Speaker of the National Assembly Dr Barton Scotland on Friday. His apology ought to explain the circumstances to which his utterances were made.

It was also recommended that the government releases all documents relative to the matter.