Fraud probe launched after procurement concerns highlighted at UHWI

 

The Fraud Squad and Jamaica Customs Agency have been called in to probe specific matters arising from the Auditor General's report on procurement activities at the University Hospital of the West Indies (UHWI). 

 

In a release Tuesday, the Board of Management of the UHWI did not provide details, but said both entities have initiated their respective processes. It said it would not comment further while these matters are under investigation. 

 

Additionally, the UHWI Board has approved the hospital's Chief Executive Officer Fitzgerald Mitchell's application for three months leave from his accrued leave entitlement. The Board says the decision was taking both to address an extensive leave backlog and to facilitate the independent conduct of the reviews and processes now underway, stemming from the Auditor General's report, without any perception of influence.

 

To ensure continuity of leadership and operations during this period, the Board has appointed Eric Hosin, a recently appointed board member, to act in the role of CEO. 

 

The UHWI Board says it takes the findings of the audit seriously and is committed to addressing the issues raised in a deliberate, transparent and responsible manner. It says the report, tabled in Parliament on Tuesday, 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. 

 

The Board says in recognition of the cumulative nature of these issues, it had already begun implementing a structured reform programme prior to the tabling of the report, aimed at strengthening governance, improving documentation and reinforcing oversight across the hospital. 

 

With the tabling of the report, the Board says it has moved to further accelerate and formalise actions that were already underway. 

 

It says 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. 

 

The hospital's management has also been instructed to regularise or suspend affected arrangements, where appropriate, and to reinforce oversight and compliance mechanisms without delay. 

 

Further, the UHWI Audit Committee has requested that the internal audit department conduct a formal audit of the strengthened procedures and advise on any additional measures required to ensure their effectiveness. 

 

The Board says where the Auditor General's 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 Auditor General found that the UHWI repeatedly breached procurement laws and government guidelines, including failing to prepare proper annual procurement plans, missing key documentation for 51 contracts, valued at $521 million, and not complying with mandatory use of the government of Jamaica's electronic procurement portal.