Procurement Commission called to investigate scandal

Sussex Street drug bond

The Opposition People’s Progressive Party/Civic (PPP/C) has for the second time approached the Public Procurement Commission (PPC), this time calling for an investigation into a contract inked between the Public Health Ministry and a known financier of the coalition Administration for the use of a Sussex Street, Albouystown house as a storage bond for drugs and medical supplies.
The formal request was made by former Minister within the Finance Ministry, Juan Edghill, who on Monday wrote to PPC Chairperson Carol Corbin, indicating that the political Opposition was demanding “a definitive pronouncement specifically addressing if this award was done in a fair, equitable, transparent, competitive and cost-effective manner according to our procurement laws.”

The former Government Minister wants the Procurement Commission to investigate specifically how a contract for a bond for the storage of pharmaceuticals and medical supplies was sole-sourced from an entity that did not own and/or operate such a facility and further “how was the company’s primary director, Larry Singh, made aware that a drug bond was needed”.
Given the argument presented by the Health Ministry in defence of the contract –Edghill is also looking to ascertain “who made the decision to sole source and under what circumstances; what was the emergency referred to by the Minister”; and how Linden Holdings Inc was engaged to ink a contract.
Among the other concerns listed in the request for an investigation, the Member of Parliament is questioning why the contract stipulated rental of “office space” and not rental of a pharmaceutical bond and whether the price was fair in terms of market value for similar facilities.
A Cabinet Sub-Committee investigation had recommended the contract be re-negotiated since there were other facilities which could provide the service at a cheaper cost.
The Member of Parliament, in his list of queries to the PPC Chairperson, also questioned whether taxpayers were in fact receiving value for money on the $14.5 million monthly arrangement.
The Public Health Ministry had also indicated that the facility adhered to World Health Organisation/Pan American Health Organisation (WHO/PAHO) standards for facilities used for the storage of pharmaceuticals and medical supplies; as such, compliance has been listed among the concerns.
Edghill is also asking the Procurement Commission to investigate what breaches took place in the procurement process and to identify any recommendations for remedial action and preventative measures for its re-occurrence.
On August 23, 2016, an unsigned copy of the contract was released to the public which illustrated that the rental contract was, in fact, for “office space” and not a bond for the storage of pharmaceuticals.
Edghill recalled that the issue with the Sussex Street bond facility came up for the first time in the National Assembly on August 8, 2016 when the Committee of Supply examined the supplementary provisions requested by the Government for money for several State agencies and projects.
After multiple questions were asked and concerns raised in mid-August 2016, Minister Raphael Trotman, according to reports from the Department of Public Information, disclosed that a sub-committee was appointed by President David Granger and comprised himself as the Chairman, Prime Minister Moses Nagamootoo and Minister of State, Joseph Harmon. The committee, after a review, recommended that the contract be renegotiated.
During the debate on the 2017 Budget in December 2016, a parliamentary delegation accompanied by the media visited the bond and found condoms, lubricants and some unused refrigerators, but no pharmaceuticals and medical supplies.
With no further action by the Government, on January 16, 2017, following the news of Minister Volda Lawrence taking responsibility of the Public Health Ministry, the PPP/C repeated its call for the ‘drug bond’ contract to be rescinded.
To date, the Ministry continues to rent the Sussex Street facility.