Bond Fiasco…. Health Ministry attempted to avoid pitfalls of previous administration – Granger

Aug 12, 2016 News

President David Granger

With the misleading utterances made by the Minister of Public Health, over the acquisition of a bond, causing a firestorm, President David Granger has added his opinion to the raging debate.
During his weekly programme, “The Public Interest,” the Head of State asserted that “the Ministry of Public Health attempted to avoid the pitfalls of the processes which prevailed under the previous administration, in which a single corporation had been given more or less, like, single source, carte blanche, and they created a huge bond, because that corporation had more or less expected that the government would always buy from them, maybe in perpetuity, but what happened is that the new administration decided to bring an end to single sourcing.”
He explained “when that was announced to the corporation which benefitted from single sourcing, it decided to charge the government a very high rate for the use of its bond which had been built into the cost before, so the government found it impossible to pay the new rates being charged by the corporation under the previous arrangement, it was almost punitive.”
“That caused the Ministry of Public Health to seek a new bond. That is how it all started, and in seeking that new bond, the government obviously had to think about timing, it had to think about the short term storage of drugs and it led to the adoption, or the quest for a new bond that is under Linden Holding, a new company.”
“It was an act driven by necessity not by any sort of perversity. It was an act because the old arrangements, single sourcing, had been criticized and had been brought to an end, and once the corporation that was the beneficiary of that old system discovered that, they imposed what were regarded as punitive rates and the government had no choice but to seek a new bond in order to store the pharmaceuticals, that is the genesis of the problem.”
The Minster of Public Health, during the sitting of the National Assembly last Monday had told Members of Parliament (MPs) that drugs were stored in the bond – which is located at Sussex Street, Albouystown.
However, this was not so, since the media was able to ascertain that the facility was still under construction and no drugs were being stored there. In addition, the Minister told his colleagues and members on the opposite side that the building was certified by the Ministry, deeming it suitable for the storage of pharmaceutical supplies. However, as stated before, the facility was not completed and therefore, could not be certified. It is of the view that the Minister misled Parliament and by extension, the nation.
A probe was subsequently launched by President Granger where a Cabinet Sub-Committee was established to review, examine the deal between the Linden Holdings Company and the Ministry of Public Health. That report was concluded was promised to be presented to the President. (See related story on page 3)