Procurement body probes $605M drug purchase
Chairperson of the PPC, Carol Corbin
Chairperson of the PPC, Carol Corbin

…to submit findings to National Assembly

AMID a public outcry over the recent purchase of some $605M worth of emergency drugs by the Georgetown Public Hospital Corporation, the Public Procurement Commission (PPC) has opened an investigation into the issue and is inviting members of the public with relevant information to submit same as part of the probe.

In a statement the constitutional body said it noted the recent statements in the media about procurement of pharmaceuticals for the public health sector and in keeping with its functions as detailed in Article 212(AA). (1) of the Constitution, it has commenced an investigation into the procurement of pharmaceutical and other medical supplies, specifically by the Guyana Public Hospital Corporation.

“In this regard, the Public Procurement Commission is in the process of collecting and reviewing relevant information from various stakeholders within the national procurement system and will conduct interviews and examine documentation as deemed necessary,” the statement read. The Public Procurement Commission said it is committed to a completely transparent and objective investigation, and invites members of the public who may have pertinent information to make written submissions to the Chairman, Public Procurement Commission at Parliament Office, Public Buildings by 12th April 2017. “Since the subject of this investigation is of national interest and has resulted in significant public concern, the Public Procurement Commission will submit its findings to the National Assembly.”

Meanwhile, Minister of Public Health, Ms Volda Lawrence,who is at the centre of the controversy regarding the drug procurement,recently told the media that she had ordered the Board of the Georgetown Public Hospital Corporation (GPHC) to launch an investigation into the matter, which she described as the expediting of the purchase of critically needed drugs and medical supplies. Lawrence said the reason she’s ordered the investigation into the matter is to put to rest speculation in some quarters that she had overstepped her bounds when she took the decision to fast-track the purchase of the drugs, rather than wait for the requisition to go to tender as is the norm.

The minister had explained the immediacy of the need to source the drugs expeditiously, as was done, telling reporters that having learnt of the shortage of drugs at the Georgetown Public Hospital Corporation (GPHC), she summoned its Chief Executive Officer and Chairman,among other officials to a meeting to ascertain the level of the crisis, so that together they could remedy the situation as early as possible. She said that based on their meeting, she learnt from the medical officials that the institution was short of over 200 types of drugs, and that this was as a result of delinquent suppliers who had indicated their inability to fulfil their contractual arrangements.

“This has created a gap, and in order to fill that gap, the hospital was buying these drugs from private institutions,” Minister Lawrence said, adding:
“And that is quite alarming to me; that put a strain on the hospital to be able to dispense the services, and hence there was now a crisis.”

She said that having learnt what she did, she immediately called for a drug inventory, which found that there was a shortage of a whopping 287 drugs. It was at this stage, the minister said, that she engaged the medical officials on the fastest way to source these drugs, since the 2017 tenders had not gone out as yet. “We looked at a two-week period in order to address the issue,” she said, “and we decided that what we can do is look at the shortlist of companies and ask them to bid on the items.

“Subsequently, I was informed that the documents were prepared, and that the four companies had uplifted them, paid for them and bid for the items. “Then I received a call one morning indicating that there was a contract for ANSA McAl in the sum of $600M-plus; I asked that that be pulled. I said I would like to see it; that I wanted to know why.”
In response to her queries, the minister said, she was told that Trinidad company, ANSA McAl was the first to respond to the bid for that amount of drugs, and because they were given a two-week deadline, and again because of their having to fly the drugs in from Europe, it would take the costs to $605M.

Lawrence said it was imperative that the drugs were needed for chronic illnesses such as hypertension and diabetes. Minister Lawrence has made it clear that she was not involved in the “process” for the procurement of the emergency drugs. She said as minister she “is not involved in the process of procurement. “The minister is involved in declaring that there is an emergency and declaring the need for us to implement whatever mechanisms are in place.”

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