The public hearing into the allegation of corruption at the Karl Heusner Memorial Hospital resumed. This morning Laurel Grant, the former Director of Human Resources – and former acting director testified. When the hearing resumed at 2 pm, the Chief Executive Officer in the Ministry of Health Dr. Peter Allen was in the hot seat. We say the hot seat because in the special audit report read last week by Deputy Auditor General Wayne Simon – numerous instances were cited in which Allen overruled recommendations of the tendering committee and chose a cheaper supplier with a generic brand. But Allen told the three member commission that the choices he made – saved the government money. But more than, CEO Allen says the tendering committee signed off on all contracts.

Dr. Peter Allen, CEO – Ministry of Health
“Over 98% of the Tender Committee recommendations were accepted and savings of over $600,000 were realized. In no way can this process be considered contravening the Act or indeed to defeat the process of having an open tender process. Once again the base fact is that over 98% of the recommendations were accepted.”

And what about the defective and some cases substandard drugs that were purchased, Dr. Allen says there was a provision in place to deal with that. He also spoke about the issue of MC-Pharmaceutical which is owned by the wife of the KHMH Board Chairman Ricardo Fabro.

Dr. Peter Allen,
“I think it is important for me to make it absolutely clear that there was no issue of favouritism or bias towards this supplier. On the contrary in fact….”

Adolph Lucas, Commission of Inquiry Chairman
“Which supplier you refer to?”

Dr. Peter Allen,
“MC Pharmaceuticals. On the contrary in fact I would like to note for the record once again that MC Pharmaceuticals did not win any contract at all in the subsequent year. Once again my Lord, I believe that it should be noted for the record that changes to the preliminary recommendations of the Tender Committee were discussed, agreed, and signed off on by the members on the 5th of May 2008. The agreed changes resulted in savings of hundreds of thousands of dollars.

Indeed there were numerous adjustments made after discussion and deliberations and after the members had signed off on them. But it is noteworthy I think that the IV given sets appeared to be the only affected item for which complaints were received, according to the report of the Auditor General. These were recorded by the system and the appropriate corrections were made as is proper.

In less than two years we have moved from a system with no records and no documentation with no open tender and no contracts for less supplies at a cost of $10.7 million to a system of open tender, signed contracts, unprecedented accountability and transparency using the most advanced software in the world for more supplies than ever for a cost of almost $2 million less.”

It is important to stress prior to the new administration assuming office in February of 2008 – there wasn’t open tendering. The hearing resumes on Thursday morning.