PRIVATE PHARMACY AT SINGAPORE GENERAL HOSPITAL (Statement by the Minister for Finance, Minister for Education and Minister for Health)

11.15 am

The Minister for Finance, Minister for Education and Minister for Health (Dr Tony Tan Keng Yam): Mr Speaker, Sir, on Tuesday in the Debate on the estimates of the Ministry of Health in the Committee of Supply, the Member for Anson asked under what conditions was the private pharmacy allowed to be set up at the Singapore General Hospital. Sir, I quote from the Member's remarks which were telecast on television:

'These drugs were bought from a chemist and druggist who has set up business, I see, at the Singapore General Hospital and it is Somedico Chemist and Druggist. May I ask the Minister how this company came to set up its business in the Singapore General Hospital? I see it is owned by a Howe family. And may I know when this company was set up in the Singapore General Hospital and whether tenders were called?

Far more importantly, whether patients who were given prescriptions are directed to go and purchase their drugs or medicines at this druggist store at the Hospital?'

I said, Sir, on that day that I agreed with the First Deputy Prime Minister that the manner in which the Member had asked his questions was calculated to cast a slur on the Government implying that there was some wrongdoing. I would go further to-say that, in his attempt to discredit the Government, the Member for Anson has besmirched the reputations of innocent parties who, regrettably, are in the unfortunate position of not being able to be present in this House to clear their names.

Sir, slurs and scurrilous remarks cannot be left unchallenged. I am, therefore, making this statement to set the record straight.

Sir, tenders for the lease of the pharmacy at the Singapore General Hospital were invited through publication in the Government Gazette and in the local press on the 24th of July 1981. Eight tenders were received. The highest tender was from a company called Somedico Private Limited which offered a monthly rental of $5,000. The next highest tender was for $3,200. The Junior Tenders Board comprising the Deputy Director of Medical Services and representatives of the Permanent Secretary (Finance), Budget Division, and Chairman, EDB, reviewed the tenders and approved the award of the tender to Somedico Private Limited for a period of three years commencing 1st October 1981.

In 1984, the Ministry of Finance approved the extension of the lease to Somedico Private Limited for a further three years based on the Chief Valuer's assessment of market rentals for the pharmacy and in accordance with the provisions in the Government Instruction Manual.

Sir, at the time when this pharmacy was tendered out in July 1981, the Minister for Health was the First Deputy Prime Minister, Mr Goh Chok Tong. Mr Howe Yoon Chong was appointed the Health Minister on 1st June 1982.

I would like to make the following points concerning the tender for the pharmacy at the Singapore General Hospital: (1) The pharmacy was leased out based on the normal Government open tender system; (2) As the amounts involved were not substantial, the tenders were reviewed by the Junior Tenders Board, and no Minister was involved in any way in the award of the tender; (3) Mr Howe Yoon Chong has no interest in the company, Somedico Private Limited, which was successful in the tender. Neither is Mr Howe Yoon Chong related in any way to the Howe family who are the owners of Somedico Private Limited.

Finally, Sir, I would like to state categorically that patients who are given prescriptions at the Singapore General Hospital are not directed to go and purchase drugs or medicines at this private pharmacy at the Singapore General Hospital, or indeed at any other particular pharmacy.

Sir, it saddens me that a Member of this House should resort to innuendoes of such a nature as to make it necessary for me to make this Ministerial Statement today. But when the integrity of the Government is questioned or when the reputations of innocent parties have to be protected, the truth must be made known.