…committee recommends review of contract, apology from Norton

By Ariana Gordon

THE Cabinet sub-committee established to review, examine and report on the medicine and medical supplies storage in the city has recommended that there be a review of the three-year contract for the Sussex Street storage facility.The Government through the Ministry of Public Health has leased a property located at Sussex Street, Charlestown, to be used as a bond for the storage of pharmaceuticals. The property is owned by Lawrence Singh of Linden Holdings Inc. That review is to be done by Attorney General Basil Williams. On Thursday, Chairman of the sub-committee, Raphael Trotman, told reporters at a post-Cabinet press briefing held at the Ministry of the Presidency, that a report completed by the Sub-Committee on the subject has also recommended that Minister of Public Health Dr George Norton offer a public apology for the statements he made while in the National Assembly on Monday.
The Minister of Public had Health told the National Assembly among other things that the payment for the New Guyana Pharmaceutical Corporation’s (GPC) storage facility was exorbitant, amounting to $19.2M, while Linden Holding Inc would cost the government of Guyana only $12.5M.
The New GPC refuted the allegations made by the Minister of Public Health and said that the company has stored pharmaceuticals for the Government free of charge at its 70,000 square foot warehouse. As a result, the sub-committee through its chairman has recommended an apology. “We are recommending, that in view of the statements made by the honourable Minister of Public Health and based on his explanations, which we have accepted, that he gives an apology, public apology and explain that his statements were in the context of the advice that he had received.” Trotman told reporters that following the sub-committee’s observation, it is “satisfied with the answers given to questions put and understood better the context under which the Minister of Public Health made his statements.” He noted that not all of the statements made by the Minister of Public Health were inaccurate, but highlighted the utterance by the minister to the effect that drugs were already stored in the new bond. “…that was not so. It was discovered that the building was in fact prepared and was about to receive a first shipment of drugs when the proposal was made for central air conditioning,” the Chairman of the Sub-Committee added.
The People’s Progressive Party has since rejected this move for Norton to apologise, saying it is an insult “and views it as an affront to the nation.” “It is to be recalled that when the minister was asked in the National Assembly to provide the details with respect to the location, the rental and certification of the bond, Norton sought to make a mockery of the questions which his colleagues on the government benches supported with mirth and loud laughter having found his explanations highly amusing, notwithstanding the fact that millions of taxpayers’ money was involved in the fiasco,” the PPP said. “In addition, Parliament was advised by the Prime Minister that all the issues concerning the bond went to Cabinet for consideration and were fully discussed and approved. The matter therefore is one of collective responsibility and not solely Norton’s. So now the question is, who will apologise for the D’urban Park, the Haags Bosch and the Demerara Distillers Limited financial fiascos? The Granger administration must take full responsibility for the Linden Holdings Inc. bond fiasco and must account to the nation and the National Assembly for its corrupt practices. The PPP stands by its commitment that Mr. Norton must go before the Privileges Committee and face the full brunt of the penalties.”
Satisfied with new facility
Trotman said too that the report will be made public after it is presented to President David Granger for review. The Cabinet sub-committee he said is satisfied that the new storage facility has met all of the World Health Organisation’s (WHO) standards for the storage of pharmaceuticals. Besides, Trotman said during the committee’s investigation it was discovered that the New GPC was owed a significant amount of money and as such, it was recommended by the sub- committee which comprised Prime Minister Moses Nagamootoo, and Minister of State Joseph Harmon that the pharmaceutical company be paid immediately.
The Permanent Secretary of the Ministry of Public Health disclosed that a cheque had been prepared for the company but was never handed over. Additionally, it was advised that the Ministry of Public Infrastructure play a greater role when buildings are being bought, leased or constructed for or on behalf of the Government of Guyana.
The Sussex Street building is equipped with approximately 10 air-conditioning units, but a central unit was needed to ensure there is a backup system at the facility. “There is obviously nothing stored there right now, the building does have all the necessary facilities as would be expected of a facility of that nature…it has a walk-in cold-storage area, delivery area, backup generation which kicks in within 10 seconds of a black out, it has 24-hour security, both physical and electronic, washroom facilities, electronic forklift system…” Trotman stated.

Asked about the appropriateness of the location for the storage of pharmaceuticals, Trotman said the facility is “sufficiently insulated” from the dangers of flooding and the usually clogged Sussex Street canal. “What impressed me is proximity to the ports of Georgetown, what might be seen as a disadvantage [to you] might be seen as an advantage… it is near to the Georgetown ports so when stocks arrive they can be easily taken there without having to come along the East Bank corridor.”

He said there was no evidence that the facility is prone to flooding and should that issue arise, the Diamond bond will be used as a backup. When asked by reporters to speak to the procurement of the building which was sourced as a result of an emergency, the Minister of Natural Resources and the Environment said the Minister of Public Health does not procure buildings, but noted that he was asked by Cabinet in July to find a storage facility and in July Cabinet was informed that there was a possibility of securing the Sussex Street building.
“…so I see it as nothing more than a coincidence that the price paid and the security deposit and first month’s rental are the same. There is no way government could have paid for the building in March, because Cabinet did not approve a payment until July.”

Trotman maintained that the Minister of Public Health is not in the business of finding buildings but his officials. The Chairman of the sub-committee made it clear that there was no public notice on the need for a building to be used as a bond by government because it was an emergency.

“The mood of cabinet when this matter was considered at the beginning of July was that we need to find immediate space. Invoices totalling US$137,000 were received from the NEW GPC, asking that they now be paid a rental, half by the MoPH and the other half by GPHC,” He stated.
Given that the New GPC is a supplier and is now a competitor in the open bidding process, government did not see it fair to other competitors to compete in a process with New GPC who would have been providing warehouse space to the government.

“We felt the immediate demand for payment of US$137,000 seemed a bit beyond coincidental once we announced there would be a change in the bidding process and secondly, that it would be highly unfair to other persons in the business to know government continued in a relationship with one of the competitors.”

Asked how Singh became aware of the needs of the Government, Trotman replied, “You’d have to ask Mr Singh that…obviously someone would have approached him. I am not sure [about] the process, but at the end of the day, the facility is quite capable of a storage area.”
He said government is not worried about the public perception given the confusion about the storage facility. In fact, when asked whether the government is guilty of the same allegations it had levelled against the former administration on the issue of sole-sourcing, Trotman said the two situations are incomparable. “I don’t think you can confuse the sourcing of drugs and essential products [for several hundred thousand persons] …with the procurement of one building. Given the circumstances, the Minister of Health was told to enter into a contract as soon as possible, because we were told we now have to pay rental for a facility that was free.
In the future, the government intends to own another storage facility in the city and the sub-committee has recommended that there be diversification, so that each region has its own facility.”