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Procurement procedures not followed in insurance deal for ministers – Ramsammy

Posted on by Project Calls in News/Developments
 The administration has reportedly entered a deal with an insurance company for health coverage but there is no evidence that proper procurement procedures were followed. The hefty insurance package, the first of its kind to reduce pressure on taxpayers, is reportedly costing Guyana almost $40M, but did not publicly go out to tender.

The issue is now being raised by former Agriculture Minister, Dr. Leslie Ramsammy. He was also a former Health Minister also under previous administrations of the People’s Progressive Party/Civic.

According to Ramsammy yesterday, sometime earlier this year, the coalition A Partnership For National Unity + Alliance For Change (APNU+AFC) government signed an agreement with a regional insurance company which has opened offices here.

The deal was struck after an announcement by Minister of State, Joseph Harmon, in June that Government is moving to secure insurance for ministers and senior officials.

A number of government officials, including ministers had sought treatment abroad, but it is by no means cheap.

Ramsammy, naming the company, which is headquartered in a neighbouring country, claimed that the agreement is worth just over $38M annually and will earn about $155M by 2020, for the company.

“It is the first time ever that Ministers will have health coverage which I assume will be sought outside the country. It is a transaction that the government has entered into secretly,” Ramsammy said in a statement.

“There was no advertisement, no indication that they were interested in obtaining health insurance for ministers and their families. I am not aware that any discussion occurred with any of the insurance companies based in Guyana.”

The former Health Minister made it clear that he is not opposed to the Government covering costs of medical care for its ministers by obtaining health insurance coverage.

“But it is important that such transactions be in the public domain. Earlier this year, Minister (Joseph) Harmon insisted that government pays no bills for ministers’ foreign health care. This was not the truth. It was a deliberate misinformation.”

Ramsammy claims that he has information that ministers have traveled to Ireland, Cuba, Canada, USA and the Caribbean and these trips were paid for by the Ministry of Public Health.

“The Auditor General must take note of this. I am confident that on examination the Auditor General will discover that these costs were met by the Ministry of Public Health and or by the Ministry of Finance.”

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