THE Public Procurement Commission (PPC), in its report on the Georgetown Public Hospital Corporation (GPHC)’s $632M drug purchase, though pointing out that the procurement laws were breached, did not recommend sanctions against the errant public officials.
Such decisions, the PPC says, must be made by the government and those sitting at the helm of the GPHC.
In an interview with the Guyana Chronicle on Monday, PPC Chairperson, Carol Corbin, explained that it was not the Commission’s intention to recommend disciplinary action against those who would have acted outside of the law.
“That was not the purpose of the investigation,” she emphasised. It was further explained that the PPC had intended to investigate the multimillion drug purchase, disclose its findings, and make recommendations with respect to remedial actions.
Corbin, who made it clear that she would not disclose the details of the report ahead of its release in the National Assembly, said it is public knowledge that the procurement laws were breached, based on previous reports. “It is was obvious that the procurement laws were breached,” the Chair told this newspaper, explaining that the hospital had made the multimillion dollar purchase before seeking approval from the National Procurement and Tender Administration (NPTAB).
It was in late March that the constitutional body launched an investigation into the purchase, in keeping with its functions as detailed in Article 212 (AA) (1) of the Constitution.
Among those who had appeared before the Commission was Public Health Minister, Ms Volda Lawrence, who argued that she was misled by GPHC Management, which was headed by Allan Johnson at the time.
Months after the Public Health Minister had appeared before the Commission, GPHC, in a statement in July, said that Minister Lawrence was not at fault. The hospital had conducted its own investigation under the watchful eyes of the Board of Directors headed by Attorney-at-Law, Kesaundra Alves.
Findings from that investigation had found that while the ultimate decision to purchase, which constitutes a breach of standard operating procedures, was the minister’s, the then Chief Executive Officer (CEO), Mr Allan Johnson, should have known better.
The findings have revealed that after a drug shortage was reported at the medical facility, Minister Lawrence met with management and asked that a plan be devised to alleviate the situation. Subsequently, a plan of action was developed and presented to the minister by the GPHC’s finance director.
That plan of action included determining the availability of drugs from the Pan-American Health Organisation (PAHO), the Materials Management Unit (MMU), and local suppliers; obtaining quotations from suppliers; sending an evaluation report to the National Procurement and Tender Administration (NPTAB) for approval, followed by the award of tender.
What transpired, however, was that rather than follow the prescribed plan of action to the letter, the then CEO wrote NPTAB seeking approval for the contracts after the corporation had begun receiving pharmaceuticals from the suppliers.
The suppliers at reference were ANSA McAL, from which was sourced $605M worth of pharmaceuticals; the New Guyana Pharmaceutical Corporation (GPC), from which was sourced another $20.8M worth; Health2000 $2.9M; and Chirosyn Discovery $2.1M.
Upon learning what had happened, the GPHC Board, which conducted the inquiry, said while it was “shocked and disappointed” that the GPHC had breached the law, there was no information to suggest that the minister had given any instructions to bypass any procurement procedures or laws.
According to the Board, senior staff of the Finance Department had an “ethical and professional” duty to properly advise the then CEO of what the standard procedure was, since the matter was within their realm of expertise.
“Johnson had been known to trust and depend on his officers to do the right thing, and it is regrettable that they failed him in this instance,” the Board had said. However, the Board did not exactly exonerate Johnson, stating that the power was within his judgment and signature, and that “he acted recklessly.”
Johnson has since been sacked.