PRESIDENT David Granger has ordered an investigation into revelations that $25 million has been handed over to a company to provide storage space for pharmaceutical drugs when in fact the bond is yet to be completed and certified.“President David Granger has appointed a Cabinet Sub-Committee to review, examine and report on the issue. Minister of Natural Resources and the Environment, Mr. Raphael Trotman has been appointed to chair the Sub-Committee and it includes Prime Minister Moses Nagamootoo and Minister of State, Mr. Joseph Harmon,” the Ministry of the Presidency announced Wednesday evening.
When grilled by Opposition Parliamentarians Monday in the Parliamentary Committee of Supply, Health Minister Dr George Norton said that the space was being rented from Linden Holding Company, which is registered at 176 Middle Street, Georgetown, and has the storage bond at Sussex Street, Georgetown.
He said that $25 million was paid as rental and a security deposit for the month of July. He also said that the bond was certified by an agency of his Ministry. However, investigations by the local media found that the bond was not certified and that it is in an incomplete state.
Dr Norton had to report to Cabinet on Tuesday, the Ministry of the Presidency stated.
The Sub-Committee appointed by the President met Tuesday at the Office of the Prime Minister and was provided with “an extensive and detailed brief with regard to the issues, needs and challenges related to the storage of medicine and medical supplies.”
The statement by the Ministry of the Presidency indicated that the Sub-Committee Chair, Minister Trotman and Health Minister Dr. Norton, “who has made himself available to the Sub-Committee for the purposes of providing information and clarifications” subsequently conducted extensive inspection tours of both the Sussex Street, Georgetown facility along with the Ministry of Public Health Supplies Chain Management Complex at Diamond on the East Bank of Demerara.
“The Sub-Committee is in the process of preparing an initial report and a further statement will be presented at the post-Cabinet Media Briefing on Thursday, August 11,” the Ministry of the Presidency stated.
Controversy over the rental deal flared when it was noted on Financial Paper No.1/2016, that $65 million was spent on 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. 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.
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.