The University Hospital of the West Indies’ board of management said it is committed to addressing the issues related to selected procurement activities highlighted in the Auditor General’s report in a deliberate, transparent, and responsible manner.

The report, which was tabled in Parliament, identifies weaknesses that reflect long-standing procedural gaps and legacy practices that developed over several administrative periods, predating both the current board and the current executive leadership.

Specifically, the Auditor General’s report highlighted the absence of procurement documentation, misuse of tax-exempt status, and after-the-fact procurement activities, among other breaches related to $521 million in contracts awarded by the UHWI.

In a statement, the UHWI’s board of management said it “acknowledges the Auditor General’s report” and “takes the findings seriously”.

“In recognition of the cumulative nature of these issues, the board had already begun implementing a structured reform programme prior to tabling the report, aimed at strengthening governance, improving documentation, and reinforcing oversight across the hospital,” the statement read.

“With the tabling of the report, the board has moved to further accelerate and formalise actions that were already underway. A comprehensive review of all procurement systems referenced in the report has been directed, with a focus on identifying root causes and strengthening controls to safeguard transparency, compliance, and value for money,” it added.

In the meantime, the hospital’s management team has received instructions to regularise or suspend affected arrangements and to strengthen oversight and compliance mechanisms without delay.

The hospital’s board has also reported specific matters arising from the report to the law enforcement authorities, including the Jamaica Constabulary Force’s Fraud Squad and Jamaica Customs, in keeping with its obligations as a public institution.

“Both entities have initiated their respective processes. It would be inappropriate for the Hospital to comment further while these matters are under investigation,” UHWI outlined in its statement.

UHWI CEO on leave

The hospital’s board has also approved the CEO’s application for three months’ leave from his accrued leave entitlement.

“This decision was taken both to address an extensive leave backlog and to facilitate the independent conduct of the reviews and processes now underway, without any perception of influence. To ensure continuity of leadership and operations during this period, the board has appointed Mr Eric Hosin, a recently appointed board member and former president and CEO of Guardian Life Jamaica, to act in the role,” the UHWI disclosed.

Having discussed the matters raised in the report at a recent meeting of the UHWI Audit Committee, the hospital’s board has requested that the Internal Audit Department conduct a formal audit of the strengthened procedures and recommend any additional measures required to ensure their effectiveness.

“Where the report identifies matters requiring further internal review, the appropriate board committees have been mandated to examine those issues and make recommendations in accordance with established procedures and applicable laws governing public bodies, ensuring that due process is observed at all times,” the hospital’s board explained.

“The board also recognises that the Auditor General’s Report references the absence of audited financial statements for recent years. This represents a legacy challenge arising from a combination of factors, including COVID-19 operational disruptions, major systems transitions, interruptions in external audit engagements, and the loss of key financial leadership. To address this, the Board has undertaken extensive remedial work within the finance function, has decided to accept qualified accounts where necessary to advance completion,” the board further outlined.

The UHWI’s board recently appointed W Gihan C. de Mel as chief financial officer, noting that he brings extensive audit and public-sector financial management experience. The newly appointed CFO is leading efforts, in collaboration with external auditors, to establish a realistic, achievable path to completing the outstanding financial statements.

“The board welcomes the committee appointed by the Minister of Health and Wellness and will fully cooperate with its work. Throughout this period, the hospital’s operations and patient care delivery continue as usual. The board will continue to provide updates to the Ministry of Health and Wellness, the Auditor General, and the public as this work progresses,” the hospital’s board said.