Health Ministry to strengthen procurement system after Integrity Commission Market Me probe

The Ministry of Health and Wellness says it has recognised the need to strengthen its procurement systems to ensure greater transparency, following the tabling of an Integrity Commission (IC) report on contracts awarded to Market Me between 2016 and 2021.

The ministry released its statement on Tuesday, before the report was tabled in the House of Representatives, highlighting that no wrongdoing had been found among ministry staff while acknowledging the need to address the commission’s recommendations.

“We further note the finding of no malfeasance with regards to the actions of the team at the ministry. However, we recognise the recommendations of the IC and the need to strengthen the procurement processes to ensure greater levels of transparency in order to mitigate the perceptions as defined in the report," it said.

The 107-page report detailed findings of procurement irregularities and perceived conflict of interest surrounding the contracts awarded to Market Me for services related primarily to the Jamaica Moves physical fitness campaign between 2017 and 2021.

The report also noted that Health and Wellness Minister Dr Christopher Tufton and Lyndsey McDonnough, co-managing director of the company, failed to declare their "friendship" while her company received nearly $80 million across 15 contracts - 14 from the health ministry and one from the National Family Planning Board.

Director of Investigation Kevon Stephenson said while Tufton did not directly influence the award of a $15.8 million contract, his introduction of Market Me to ministry officials and comments that the company "be involved in all PR matters related to the Office of the Minister” could be reasonably interpreted to have indirectly influenced the engagement of Market Me.”

He said Tufton's actions “gave rise to, at its lowest, a perceived conflict of interest and thereby contravened the principles of transparency and good governance." McDonnough, who also served briefly on the board of the National Health Fund, was found to have acted “wholly inappropriately and irregularly” by attending a January 2017 meeting where the Jamaica Moves programme was discussed.

The ministry also addressed findings in the report that raised questions about the splintering of contracts awarded to Market Me.

“We acknowledge that the transactions, some of which are evidenced on page 70 of the report, could give the appearance of splintering, however, careful analysis would show… the invoices were for ‘reimbursement’ of goods and services already received and utilised for the implementation of activities in the Jamaica Moves campaign. That none of these items were part of the supply contract with Market Me… and that these costs had been paid months in advance by the company, with the full knowledge of the Ministry, and that a reimbursement was required," the ministry said.

The IC report said six of the ministry’s contracts, all related to the Jamaica Moves campaign, were awarded to Market Me on the same date (May 1, 2019).

"The award ...could, without more, be construed as an attempt to splinter the contract," it said, noting that if the six were awarded as one contract the value would have exceeded the $1.5 million limit for direct contracting and require competition.

The DI concluded that this action gave the "appearance of contract splintering" to deliberately circumvent the need for open or limited competitive bidding.

The ministry insisted that it acted transparently and with oversight in dealing with Market Me.

“At no time was there any intent to circumvent the procurement process through contract splintering. Once the matter was raised with the Executive Management of the Ministry, all efforts were immediately made to: cease all further advance payment transactions; regularise the transactions through the payment of the outstanding reimbursements; and finalise the procurement process for a new contract to cauterise any further need for advance payments by the company and any subsequent payment for reimbursement.”

It added: "the ministry welcomes the conclusion of this investigation, and we will seek to enhance our fiduciary management systems to support greater transparency in our procurement processes."

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