New GPC received 80% of drugs contracts in 2011 – Auditor General
The 2011 Report of the Auditor General (AG) is out and its makes for some interesting reading.
The report concentrated on the accounts of the government Ministries including the Ministry of Health.
Specifically, the report raised issue over the government’s purchase of medical drugs and supplies.
According to the report, one of two local companies pre-qualified by the government to supply pharmaceuticals and medical items are New GPC and Medpharm. New GPC received a whopping 80 per cent of the contracts to supply while Medpharm received one per cent.
In total, the Ministry of Health expended US$13.3 million for pharmaceuticals and other purchases.
New GPC received contracts to the tune of US$10.6 million which was equivalent to 80 per cent.
The other company, MedPharm, received just under US$40,000 worth in contracts.
In recent times, bids by New GPC have come under more scrutiny because of its high price tag submitted to the Tender Board when compared to other bidders.
This was very glaring two weeks ago when two lone tenders were opened for the supply of anti-malaria drugs.
New GPC submitted a bid for $261 million while IPA, another supplier, submitted a bid for $32M, a vast difference of more than $228M.
The issue has seen government saying it is too early to pronounce, as the tenders are still in the process of being evaluated.
It was only recently that the opening of bids at the National Procurement and Tender Administration Board (NPTAB) were allowed to be reported in the press.
New GPC has been the main supplier of drugs and other supplies to government since the late 90s.
In recent months, New GPC has filed several court actions following reports of the drugs purchases. Kaieteur News, the Stabroek News and the opposition parties in the National Assembly have come under heavy criticism from New GPC’s Chief Executive Officer, Dr.
Ranjisinghi ‘Bobby’ Ramroop.