Sussex Street ‘house bond’ arrangement “undesirable”
…Cabinet now agrees to find its own facility, currently inspecting sites – DPI
The Government of Guyana has decided to secure its own pharmaceutical storage facility and is currently inspecting suitable sites, since the arrangement to pay in excess of $12.5 million monthly to Linden Holding Inc for its Sussex Street
In composite photo: Workers outside of the Linden Holding Inc ‘drug bond’ on Sussex Street, Albouystown on Thursday
‘drug bond’ has been found to be ‘undesirable’.
That information was disclosed on Thursday – weeks after the specially appointed Cabinet Sub Committee had submitted its report recommending that the lease be renegotiated or terminated, since a similar facility could be found at a cheaper rate.
Director of Public Information (DPI), Imran Khan, by way of a public statement, on Thursday released the decision of the Cabinet after deliberations on the matter.
According to Khan, “Cabinet has concluded that the arrangement was undoubtedly undesirable.”
He said Cabinet also considered the options and recommendations in the report of the Cabinet Sub-Committee tasked with reviewing the decision of the Public Health Ministry to lease facilities at Sussex Street.
Shortened lease
According to Khan, the Cabinet Council of Ministers, chaired by President David Granger, explored a range of options in its deliberations including shortening the lease period while expediting the search for another facility.
Government, through the Public Health Ministry, had inked an agreement with Linden Holdings Inc – a company owned by prominent People’s National Congress (PNC) supporter Larry Singh with no experience in the pharmaceutical industry – to pay $12.5 million annually in addition to agreeing to pay for the maintenance of the facility in addition, as well as the utility and other bills, including security.
Singh’s company has its registered office in a Middle Street property that housed the former Sidewalk Café, owned by Public Telecommunications Minister Cathy Hughes.
The matter had come to the public’s attention on August 8 during the consideration of the Financial Papers outlining advances made from the Contingency Fund.
It was discovered at the time that the Public Health Ministry had, in fact, already handed over a $25 million deposit to Singh’s Linden Holdings Inc – the same amount he paid for the Sussex Street property.
The revelations had generated widespread outrage and public condemnation after which a Special Cabinet Sub-Committee had been appointed to review the deal.
Options
That Cabinet Sub-Committee was chaired by Natural Resources Minister Raphael Trotman and comprised Prime Minister Moses Nagamootoo and Minister of State, Joseph Harmon.
DPI Khan, in providing details of the Cabinet deliberations on Thursday, said, “The options of purchasing, constructing or leasing will also be explored.”
It was reiterated, however, “the conditions for the storage facility to be located within close proximity of the Georgetown port and be easily accessible remain applicable.”
According to Khan, “Though it has, out of necessity, taken some time to arrive at these decisions, Cabinet is satisfied that significant advances have been made on this matter and when the full menu of actions is completed, the best arrangement, in the interest of the people of Guyana, will be concluded.”
Hostile reception
Regarding Public Health Minister, Dr George Norton, the Cabinet review has noted that he has already taken responsibility for the imbroglio and has publicly expressed regrets over the controversy.
Dr Norton was found to have misled the National Assembly, when he said during the August sitting that the Ministry had already begun storing drugs and medical supplies at the Sussex Street location.
At the time, this was not the case since the facility was still under renovation, but this appears to have changed, since checks at the Sussex Street location on Thursday revealed that supplies were being offloaded into the bond from a 20-foot container that was parked on the road.
Guyana Times photographers encountered a hostile reception however, when attempts were made to record the offloading of the container.
“Wha de s*#@! ya’ll think ya’ll doing,” was the query of one of the officials at the site when they noticed Guyana Times photographers attempting to take out photographs of what was transpiring.
Vigilant
Meanwhile, DPI Khan, in providing an update on what has become known as the pharmagate scandal, said, “Cabinet recommitted itself to be vigilant with regard to all contracts and arrangements and assure the people of Guyana that efforts will continue to strengthen the delivery of healthcare services which, for too long, have been held hostage by close friends and cronies of the previous Administration.”
He said too that the Cabinet Council of Ministers has since acknowledged the frank expression of views by a wide cross-section of Guyanese society which it respects “as vital to true participatory and inclusionary democracy”.
Khan said the Government recommitted itself to managing the affairs of the State in a transparent and accountable manner and to respect public opinion at all times.
