Restricted and single source procurement: The HDM Labs Case
Over the last two weeks or so, the print media have been carrying reports of another apparent irregularity in the procurement of drugs and medical supplies at the Ministry of Public Health. This time, the procurement relates to the supply of pharmaceuticals, including, 27,040 bottles of metformin 500mg tablets, 63,804 of 2% lidocaine injections, 49,303 diclofenac 1% 30g gel, 28,232 propofol 10mg/ml injections, 16,951 bottles of acetylsalicylic acid X1 tablets, and 12,392 bottles of 75mg diclofenac tablets. The supplier, HDM Labs Inc. of Island Park, New York, was chosen using the restricted method of procurement, and the contract was awarded in the amount of US$1.790 million, equivalent to G$366.9 million.
Readers will recall that in February 2017 a similar controversy erupted in the emergency procurement from ANSA McAL of $605 million in drugs and medical supplies for the Georgetown Public Hospital Corporation (GPHC). Apart from a breach of the Procurement Act, there were a number of concerns about the prices of certain items supplied, compared with those charged by other pharmaceutical suppliers. In the midst of public criticisms, the GPHC’s board investigated the matter and concluded that the Chief Executive Officer acted “recklessly” in initiating the procurement but no evidence was found that the Minister of Public Health gave any instructions for the procurement procedures to be bypassed. The Public Procurement Commission (PPC) carried out its own investigation and also exonerated the Minister.
Background information about HDM Labs Inc.
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Image: SimonQ (flickr)