THE New GPC Inc (NGPC) said its recent award of a $1.1B contract to supply drugs to the Georgetown Public Hospital Corporation (GPHC) is based on its status as one of two local companies that are prequalified to supply medication to the hospital. And it noted that the International Pharmaceutical Agency (IPA), headed by Lloyd Singh, failed a prequalification test carried out by the hospital in the latter part of 2010.
The statement comes in light of reports in the Kaieteur News that sought to cast aspersions on the company being granted the contract.
The company, in a statement, says it is attempting again to provide the media with information on this matter that will assist them to report in a more professional manner.
According to the statement, to prequalify, local and international suppliers of pharmaceuticals and medical supplies were required by the Ministry of Health, in 2010, to satisfy the following: legal status, manufacturing capacity, warehousing capacity, licences to manufacture and import, quality control personnel, facilities and SOPs, previous experience in supplying pharmaceuticals, certification of the products and suppliers (where they were not manufactured in Guyana) and financial capacity.
Apart from NGPC, Health International Inc (HII) and one international supplier, only two other local companies expressed interest that is Medpharm Co., and International Pharmaceutical Agency (IPA).
Only Medpharm Co. and NEW GPC INC were duly certified and approved to join a list of established international organisations, including PAHO, IDA, WHO, UNICEF, UNFPA and UNDP, to supply pharmaceuticals and medical supplies to the Government of Guyana. The NGPC says, to its knowledge and in keeping with the AG’s recommendations, the ministry has ever since been operating within this mandate.
The NGPC added that there were numerous media releases related to the positive economic spin-offs for the country, in addition to the significant benefits to be gained from prequalified suppliers. These include significant reduced lead times arising from closer communication between the MOH and the supplier. The supplier bears some of the responsibility for storage and stocking of materials, whether finished products or raw materials, and adds that order volumes can be lower and hence better control over expiration. It is relatively easier to obtain more flexible payment terms and credit as the case may be.
Custom packaging can be provided, which is a deterrent to theft, according to the statement. It states also that it must also be recognised that developing local capacity is key to self sufficiency and enhanced preparedness in the event of an emergency – NGPC undoubtedly stands out as the local entity with the requisite capacity. On the other hand, suppliers that are not prequalified can involve a process that results in higher prices, complexity in regulating quality, and also difficulty in recouping compensation for inferior goods which have been paid for. Delays in deliveries can also pose a problem.
However, the NGPC says despite the fact that IPA failed to prequalify; this company has been the beneficiary of contracts from the ministry for the supply of pharmaceuticals, medical supplies and equipment to the tune of hundreds of millions of dollars every year. It should also be noted that NGPC had to intervene to avert a national crisis when IPA failed to supply ARVs for which they had been awarded.
The reports in the media the past week suggest that NGPC is being given preferential treatment by the Government of Guyana, but this is far from the truth. The general public must be informed that it is the ministry and the government and people of Guyana who derive a number of benefits by purchasing from NGPC.
The government and people of Guyana benefit in excess of $400M per year from purchases made from NGPC. A large part of this comes in the form of savings derived by the Ministry of Health and the Georgetown Public Hospital Corporation, and the various taxes the company pays. NGPC also contributes to various social causes.
A report in the media a few days ago, under the caption “IDB’s Basic Nutrition Programme here recognized by U.S. Treasury”, spoke of the distribution of ‘micronutrient supplements “sprinkles” which reduced overall cases of anaemia by around 30 percent among pregnant women and children under five years old. The report further stated that the micronutrient supplement benefited over 41,000 infants in 79 Health Centres”. The IDB, according to the report, was presented with an award by the U.S. Treasury for its Basic Nutrition Programme in Guyana via the distribution of these micronutrients. It is to be noted that NGPC manufactures the same micronutrient supplements, “sprinkles”, in collaboration with the Hospital for Sick Children in Canada and Heinz Co., to supply the MOH/HDSU for free distribution to pregnant women and children under five years old.
The statement adds that the fact that Guyana, through NGPC has the capacity to respond on its own to medical emergencies would be lost on some people, especially those keen on scoring cheap political points. Nevertheless NGPC remains committed to the government and people of Guyana.
The preservation of the nations’ health is the most important mission of NGPC, which is providing quality pharmaceutical products at competitive prices, so that the ordinary man can derive maximum benefits at little or no cost.