Latest update April 19th, 2024 12:59 AM
Mar 30, 2017 Letters
Dear Editor,
After the elections of May 2015, all of the forensic audit reports including the report of the Georgetown Public Hospital Corporation (GPHC) screamed – Fraud! Collusion! Conspiracy! Kick-backs! Bribery! They were sweeping indictments of the system of awarding contracts and making payments without proper tendering and authorization. Today, as the second anniversary of hope for change approaches, I am in awe of former Health Minister Ramsammy’s letter on rejecting current Health Minister Lawrence’s justification for the $606M emergency drug purchase.
As the new Public Procurement Commission prepares to be up and running, Guyana continues with the drug procurement system, with minor modifications, which Ramsammy and former President Jagdeo had established. There was a pivotal role for a Chief Executive Officer (CEO) in the person of Michael Khan who coordinated the political and suppliers interests. Almost two years later, the government has changed, some faces have changed, but the agencies and suppliers created by the PPP(C) still have a strangle-hold on the system.
They can create artificial shortages to give the government a bad rap especially if the Hospital continues to store its inventory in suppliers bonds and the system continues to rely on the antiquated bin-cards instead of computerization. The PPP(C) has created a monster in the procurement process and management of the GPHC, but they now have the gumption to tell the coalition government to own it; a sad reality why I sympathize with the new Minister of Health. So, what did the auditors find and how much did we reform the procurement process?
The auditors found many discrepancies in a number of issues including the management of the hospital, awarding of contracts, lack of proper internal controls, and maintenance of proper financial systems.
The deficiencies are many but some of the most obvious would include: non-preparation and submission of financial statements to the National Assembly for their last seventeen years in office, by-passing strict lines of communications, consolidating decision making power in the CEO with the Board as a rubber stamp, ignoring internal audits, not pursuing evidence of misappropriation, and having about 70% of doctors in private practice without licenses.
In the PPP (C) Government, the CEO had approval authority over even the most insignificant transactions in the Hospital. In the absence of key controls, all payments (petty-cash, payroll, suppliers etc.), purchasing, bank-drafts to overseas suppliers, signing of contracts and approval of requests for purchases were the sole power of the CEO. On the question of sole sourcing and contract splitting, the CEO had his way of getting around the policy guidelines, most likely by a simple phone call to the President or the Minister; a form of centralized decision-making and control as practiced in Russia.
In one instance of an insider arrangement, the New GPC owned by Jagdeo’s friend Ramroop had to stand down on grounds that his products were of poor quality. K. D. Enterprise owned by K. D. Singh, known to the CEO Michael Khan who was also a Freedom House comrade, was favored for this contract.
It was approved by the GPHC Tender Board although not in harmony with the limits set by established policies. The CEO would later seek covering approval from National Tender Board. K.D. Enterprise must be a rear Guyana success story to earn almost $1B in contracts in just three years even though it had no import license or marketing authorization to supply prescription items. It hastened to register its business later in 2014 as Ramotar was set to suspend Parliament.
Irregularities at GPHC also permeated Human Resource Management and the culture of doing business there. There is no wonder that the mortality rate is so high because of the need for greater professionalism, care, and empathy for others.
The pharmacy issued drugs to wards and to patients with no patient diagnosis stated on the prescription, often unstamped and unsigned. Unqualified persons and also permanent individuals were transferred to contract. What is even more bizarre is that in the last days of the PPP(C) Government, officers would sign off on each other’s acting and responsibility allowances in contravention of Public Service Rules which give the authority on these matters to the Public Service Commission and Public Service Ministry, respectively.
This is the corrupt system of the corrupt PPP(C). It is the hand that the PPP(C) has dealt Guyanese and they now have the audacity to justify their criminal actions and lecture the nation about corruption and democracy. They have no shame! Their objective is to undermine any meaningful reform in the Health and other sectors since many suppliers and key decision makers had invested in their corrupt system of patronage. They thrive on Ad Hoc practices and circumvent internal controls and standard operating procedures.
They hate transparency and accountability and pedal fake news to sway public opinion for their narrow self-interest and political agenda. They are gleeful that SOCU has so far not charged anyone for administrative crimes while in office. Most significantly, they are making hay of the fact that the coalition government has failed to clean up the old mess and change the corrupt PPP system.
It is imperative to immediately establish a task force to correct the organizational and systemic problems the auditors have cited at GHPC and every other government agency. This task force will put the necessary changes in place and periodically assess the impact of these changes to stop the haemorrhaging. The work of the task force is long overdue and is critical for the 2020 coalition platform. It is time for real change – and quickly, before we change back to the corruption unlimited of the PPP(C).
Max Wallerson
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
Apr 19, 2024
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