–funds for medical drugs storage bond approved

The National Assembly has cleared $931 million which had been used from the Contingency Fund to build the Durban Park and rent new facilities to store pharmaceutical drugs, among other projects.Funding for the projects was cleared on Monday night under Financial Paper No.1/2016. The Durban Park project, for which the Government had faced unrelenting questions, did not generate significant questioning from the Opposition despite the quantum of expense cited on the Financial Paper.

Spending for Durban Park, built specially for the 50th anniversary celebrations, has been put at $406 million under the Ministry of Public Infrastructure. Questioned by the Opposition, Minister David Patterson admitted that when the Public Infrastructure Ministry was handed the project in April, its completion was pegged at $150 million. The project was previously being undertaken by a private contractor.

Patterson said that subsequent works, notably strengthening the grounds, were not anticipated, hence the need for resort to the Contingency Fund to complete the project, which eventually amounted to $406 million.

When the PI Ministry took over, a selective tendering process was done and 16 contractors were hired to complete the stadium, which was used for the Independence Day celebrations on May 26, Patterson disclosed.

The stadium will shortly be handed over to the Ministry of Communities, Patterson announced.

Controversy in the House surrounded the $65 million rental of properties to store pharmaceutical drugs. It was indicated on the Financial Paper that $38 million had been paid as rental to the New Guyana Pharmaceutical Corporation (New GPC) for the period March-June 2016. Public Health Minister Dr. George Norton indicated, however, that since the New GPC was charging $19 million a month (shared 50/50 between the Government and the Georgetown Hospital), the Government was obliged to seek cheaper rental.

CHEAPER RENTAL
That cheaper rental was secured from the Linden Holding Company for $12 million a month. However, for the month of July 2015, a total of $25 million was handed over, being rental and a security deposit.

Pressed to give details of the company and its owners, Minister Norton gave the company’s address as 176 Middle Street, but said the actual storage bond was located at Sussex Street, Charlestown, Georgetown.

He could not immediately provide an exact address, or name the owners of the company, but undertook to provide the information at a later point. He also said the initial contract was for three years, and that the contract was signed with the company.

When the questions were first put to him, the minister indicated that he would be inclined to provide the contract once the other party agreed. The Opposition protested that agreement from the other party should not be the basis for the release of the contract, since public funds were involved. In the end, the Minister said he would provide the signed contract to parliamentarians.

Among the other funds approved under the Financial Paper were $234.7 million for the Ministry of Agriculture, of which $193 million were for the National Drainage and Irrigation Authority (NDIA), which had to cater for the prolonged dry spell affecting Regions Two, Three, Four, Five, Six and 10. Of this amount, $139 million were utilised for fuel and lubricants, $36 million for equipment maintenance, and $17.4 million for transportation equipment.

TACKLING FLOODS
Flooding of several areas in Region Five needed addressing, and this was done at a cost of $41 million; of which $16.6 million were expended for fuel and lubricants, $4 million for transportation of equipment, $8 million for tractor pumps, $.4 million for contracted excavation works, and $8 million for other works — including procurement of fuel drums and stop logs, among other things.

Under a separate spending in Region Six, $41 million were spent for emergency excavation works in various areas, namely Eversham, Bush Lot, Maida, Adventure, Kildonan, Bengal, Letter Kenny, Numbers 73 and 74 Middle Walk, Number 72 Intake Canal, and the Chine Cross Canal to Kilmarnock Village.

Under the Guyana Defence Force (GDF), $20 million were provided under “Office Materials and Supplies” to offset expenses for the procurement of maps and writing materials, which aided the development of Orders and other related documents in support of the 46th Republic anniversary celebrations, the 50th Independence anniversary celebrations, and intensifying Operation Dragnet — a Joint Security exercise.

Also under the GDF, $35 million were provided for vehicles and spares, with Government explaining that maximum serviceability and operational readiness of the GDF’s fleet of vehicles was necessary during the heightened period of Operation Dragnet, and to cater for the Republic and Independence anniversaries.

For the GDF, $46 million were also provided for “Other Transport, Travel and Postage.” Government said this allowed for the hiring of an aircraft to satisfy routine maintenance issues and operational requirement, since over the past months the GDF fleet of aircraft has been unserviceable for varying periods.

Presently, it was stated, the Y12 and Skyvan are unserviceable due to maintenance issues. Additionally, the funding was needed for the hiring of air, sea and land transportation for other operations-related activities such as Operation Dragnet.

In addition, the GDF received a further $84 million, which catered for expenses related to the laundering of uniforms (ceremonial Army uniforms for some 600 soldiers), rental of tents and other equipment in support of the intensification of Operation Dragnet for the anniversary celebrations.