…says information suggests gov’t received value for money

PUBLIC Health Minister Volda Lawrence went head to head with members of the opposition – People’s Progressive Party/Civic (PPP/C) as she defended the multi-million contract awarded to HDM Labs Inc. for the purchase of pharmaceuticals, saying that the Public Health Ministry got value for its money.

The contract was awarded on August 31, 2017 by the National Procurement and Tender Administration Board (NPTAB) to the tune of US$1,891,443 or GUY $409.497M, and signed on September 8, 2017.

The auditor general in his 2017 Report, highlighted a number of unsatisfactory features; these included the lengthy time taken to deliver the pharmaceuticals. However, Minister Lawrence said while an investigation has been launched, at this stage it is believed that the Public Health Ministry got value for its money.
The supplier was required to supply the drugs two weeks after signing of the contract; as such, all items should have been delivered no later than September 22, 2017, but this was not the case.

“At this date, no items were delivered and delivery commenced in October 2017. As at 31 December 2017, items to the value of $141.892M or 35% of the contract price were delivered. The supplier fulfilled his obligations under the contract in March 2018, that is, six months after the agreed delivery date,” the Auditor General Deodat Sharma stated in his report.

On Wednesday in the National Assembly, Opposition Member of Parliament Dr. Frank Anthony, backed by opposition Chief Whip Gail Teixeira, pressed the public health minister for answers.

In response to the first 10 questions placed before the House, the Public Health Minister said initially a total of six companies were invited to tender. Minister Lawrence said the main criterion required that the suppliers must not have pending contracts that would hinder the delivery of emergency supplies to the ministry.

This was among factors that contributed to HDM Labs Inc. being selected and awarded the contract.

Minister Lawrence acknowledged, however, that though the contract was signed early September, the medical supplies were delivered in October, November and December 2017, and then again in January and April 2018.

Pressing for more answers, Dr. Anthony questioned whether the company was sanctioned for its failure to deliver the pharmaceuticals on time as stipulated by the contract. “Mr Speaker, according to the Auditor General’s Report, Section 565…the supplier was required to supply the drugs two weeks after signing of the contract, that is, all of the items should have been delivered no later than the September 22, 2017. At this date, none either was delivered and the delivery in October 2017,” Dr. Anthony stated, while raising the penalty.

In response, the public health minister, while informing the House that she has in her possession shipping documents detailing the arrival of the pharmaceuticals in Guyana and the arrival at the ministry’s main bond, said the matter is being investigated.

“…I must indicate that this is a matter engaging the Ministry of Public Health Permanent Secretary and Procurement Department; and at this time we will not be able to answer that,” she told the House.

Nonetheless, Minister Lawrence assured the House that based on information received, her ministry has gotten value for its money.
“The policy of the ministry is that we ensure that whenever we expend public funds that we receive value for money,” she said, while emphasising that based on the information received, the public health ministry got its money’s worth.

Dr. Anthony then sought to question the information provided to the National Assembly by the public health ministry on the contract. He recalled that on July 18, 2018, Minister Lawrence informed the National Assembly that the contract was awarded to HDM Labs to the sum of $366.9M, but the Auditor General’s Report reflects the sum of$409.497M.
The exchange rate employed by the auditor general must be considered, the public health minister said in her response, while pointing out that on August 29, 2017, Cabinet noted the award was in the sum of US$1,891,443. “We would have to establish the exchange rate that is being used,” she emphasised.

While apparently brushing aside the responses given by the minister, the Opposition Chief Whip said it is rather odd that the company has not enquired about outstanding money ranging in the millions.

“The company is owed over $169M by the ministry; why is the company not interested in being paid, or is it that this company has had several contracts with the ministry,” Teixeira queried Minister Lawrence clarified that HDM Labs have enquired on more than one occasion about the outstanding funds. “I have information via email in the months of April, June and August from the company to the Permanent Secretary of the Ministry of Public Health, enquiring about their payments,” she said.

According to the Auditor General’s Report, five cheques in the sum of $283.811M and representing 69% of the contract sum were processed for the supplier; one payment for $17.194M was paid on November 23, 2017, while three cheques for amounts totalling $223.710M were paid in 2018.

“Thus, the contractor was paid amounts totalling $240.904M of the contract sum. At the time of reporting, one cheque valued at $42.907M remained on hand,” Sharma stated. The opposition’s chief whip also sought to determine whether HDM Labs had any other contract with the ministry at the time of the awarding of the contract; but Minister Lawrence refused to answer, on the basis that it was a new question being introduced.