Govt continues to pour $14M monthly into “bottomless pit”

…since Sussex Street bond still to be used by Public Health Ministry – Nandlall

Having cut the Budget for the judiciary for 2017 by over $100 million, the Government continues to pour $14 million a month into a “bottomless pit” in payments being made to Linden Holdings Inc for the storage of drugs and medical supplies but to date the facility is yet to be utilised.

This is according to former Legal Affairs Minister and Attorney General Anil Nandlall, who in a recent interview with Guyana Times, lamented the state of affairs, saying that Government could have very well been better utilising its scarce resources by investing in more programmes integral to the welfare of Guyanese.
Nandlall reminded that Government continues to complain that it is cash-strapped, yet it has already plugged in excess of $90 million into Linden Holdings Inc—owned by Larry Singh, an Alliance For Change (AFC) financier.
The Opposition Parliamentarian during his interview with Guyana Times also recalled that President David Granger had set up a Cabinet Sub-committee which had recommended that either Government find another facility, or renegotiate the rental downward.

This is yet to happen since Government continues to pay Singh’s Linden Holdings Inc for services not rendered since the Ministry is still to use the facility.
In fact the bridge to the building has been damaged and is currently under repair.
Nandlall is calling on Government to remedy the situation and reminded that Government still has under its control a state-of-the-art facility at Diamond, East Bank Demerara, in addition to capacity at the Georgetown Public Hospital Corporation and other regional facilities.
Public Health Minister Dr George Norton a week ago found himself in hot water when Speaker of the National Assembly, Dr Barton Scotland, found that a prima facie case had been made against the Minister with regards to allegations that he misled the House in his pronouncements on Linden Holdings Inc and the monies being paid by Government.
The Public Health Minister has since been referred to the Parliamentary Committee of Privileges to determine if in fact he did abuse his privileges as a Member of Parliament and whether he should be sanctioned.
The matter was presented to the House in a Motion submitted by Opposition Parliamentarian Dr Frank Anthony and seconded by Chief Whip Gail Teixeira.
The fiasco stems from an August 8 consideration of Financial Papers when it was discovered that Government had in fact entered a contract to pay a VAT-excluded $12.5 million monthly rental to Linden Holdings Inc for the storage of drugs and medical supplies. This obtained despite the fact that New Guyana Pharmaceutical Corporation (NEW GPC) was providing free storage at a world class facility free of cost.
The brouhaha that erupted led President Granger to set up a Cabinet Sub-committee to investigate the matter and make recommendations. That committee had concluded that the contract should be terminated or re-negotiated since a similar facility could have been found at a cheaper rate.
Guyana Times had managed to garner more in-depth information – from a reliable source – of the Confidential Cabinet Report that was handed to President Granger in August 2016, for Executive Action.
In the report, the Cabinet Sub-committee found that—contrary to earlier pronouncements by Government spokespersons—the value of the lease with Linden Holdings Inc should be reassessed, as it is likely that a similar facility could be obtained at a lower rate.
Dr Norton at the time told Parliament that the building was in fact already being used by the Public Health Ministry to store drugs and medical supplies.
This publication was told that under examination by the Cabinet Sub-committee, Minister Norton said his statement was based on the reliance of information provided to him by the ministry officials “to the effect that the bond was ready and in use.”
In mid-October, more than two months after he was found to have misled the National Assembly, Dr Norton apologised to the House.
Norton used the occasion of ‘Statements by a Minister’ to offer the apology to the President, Prime Minister, Speaker and other members of the National Assembly when the House came out of its annual recess.
The apology was however informally rejected by sections of the political Opposition.