CORRUPTION | VAMED CEO Literally Took GY$35 billion For New Amsterdam Hospital and Jet

GEORGETOWN, GUYANA — Serious allegations of corruption and mismanagement have been leveled against the People’s Progressive Party (PPP) government regarding a US$161 million (approximately GY$35 billion) contract for a new “world-class” hospital in New Amsterdam.

The project, which was promised to residents of Region Six as a “Level 5” state-of-the-art facility, is now being scrutinized for its lack of progress and suspicious procurement process.

A History of “Failed” Projects

The contract was awarded to VAMED Engineering, an Austrian-based firm, in July 2023. This award has sparked outrage because VAMED was also the contractor for the Pediatric and Maternal Hospital at Ogle, a project that critics describe as an “unfinished shell” despite billions in taxpayer dollars being spent.

Critics argue that the government failed to conduct proper due diligence or background checks, which would have revealed a history of “stalled” or failed projects in other countries. Furthermore, the contract was reportedly awarded without a public tendering process, bypassing standard checks and balances.

Current Status: “Piles in the Ground”

Despite a completion deadline set for April 2027, a visit to the New Amsterdam site reveals very little progress.

• Visual Evidence: Drone footage shows only a few piles driven into the ground at the construction site.

• Stalled Work: Reports indicate that virtually no work has been done since the contract was signed more than a year ago.

• Advanced Payments: Meanwhile, the government has already approved an advance payment of 10% of the contract value—totaling GY$3 billion—to the company.

Siphoning Funds While Poverty Persists

The controversy is further fueled by international reports concerning VAMED’s leadership. Allegations have surfaced that the company’s CEO recently used US$500,000 of company funds as security for a private long-haul jet and issued “generous loans” to affiliated companies while projects remained stalled.

This stands in stark contrast to the economic reality for many Guyanese citizens:

• Poverty: Despite the country’s oil wealth, World Bank data estimates that 48% of the population still lives below the poverty line.

• Staffing Crisis: Questions have also been raised about how these new hospitals will be staffed, as nurses and other healthcare workers remain underpaid and are frequently leaving the country for better opportunities abroad.

Critics of the administration describe these practices as a “cabal” designed to secure kickbacks through overpriced contracts that fail to deliver services to the people of Guyana.