The College Hospital of the West Indies (UHWI) has been flagged by the Auditor Common for the alleged misuse of its tax exemption standing to facilitate importing items on behalf of personal firms, contributing to losses of over $20 million.
The AG’s report was tabled within the Decrease Home yesterday.
The audit and accompanying report varieties a part of a collection being carried out by the AG, titled “Making certain Worth for Cash in Public Well being Procurement,” which incorporates the conduct of efficiency audits at some hospitals.
The first objective of those audits is to evaluate the economic system, effectivity and effectiveness of public well being procurement processes in guaranteeing that most worth is obtained from the restricted sources obtainable.
In its report on the UHWI, the AG famous that the hospital inappropriately utilized its tax exempt standing to import items for personal firms, leading to losses totaling $23.1 million.
It mentioned customs information confirmed that gadgets, resembling workplace furnishings, laundry and medical tools had been declared as hospital imports, however stock information confirmed these weren’t acquired by the hospital and had been as a substitute obtained by personal entities.
This misrepresentation breached the Customs Act, leading to over $20 million in unpaid import duties.
The legislation prohibits false declarations on customs paperwork, with violations topic to fines or prosecution.
The AG cited for example the UHWI utilizing its tax exempt standing to import laundry tools, valued at roughly $28 million for Non-public Firm 1, inflicting a income lack of $6.6 million with UHWI paying the remaining import duties and prices of $1.9 million bringing the entire loss to $8.5 million.
Equally, the hospital facilitated the import of workplace furnishings and medical tools valued at $40.6 million for Non-public Firm 2, in addition to cups and dishes, price $1.41 million for Non-public Firm 3, leading to income losses of $10.7 million.
Subsequently, UHWI bought the cups and dishes from Non-public Firm 3 for a value of $6.9 million.
Moreover, UHWI enabled the import of 40 waste bins for Non-public Firm 4, valued at $6.6 million, saving the corporate $3 million in customs duties.
UHWI then bought the bins for $11 million and lined the remaining import duties and prices of over $980,000.
In its preliminary administration response in August 2025, UHWI confirmed that it had ceased facilitating imports for personal entities utilizing its tax exempt standing.
The AG mentioned UHWI acknowledged that this apply violated public belief and procurement legislation.
In October 2025, UHWI reiterated its acceptance of the findings, pending additional investigations and acknowledged it was searching for essentially the most appropriate measures to stop a recurrence of such actions.
In the meantime, the Well being Ministry has established an institutional evaluation committee to evaluation gaps within the administration and operations of the College Hospital of the West Indies.
That is in response to a report from the Auditor Common which was tabled in Parliament yesterday.
The Auditor Common highlighted a number of points, to incorporate the misuse of tax exemption standing, procurement breaches, break up contracts and lack of correct planning.
In an announcement, the Well being Ministry acknowledged the significance of sound company governance accountability programs to make sure transparency and effectivity within the public well being sector.
The ministry additional acknowledged the basic rules of transparency, worth for cash, competitors and integrity which underpin the federal government public procurement system.
It mentioned the UHWI is a key establishment within the public well being sector, being one of many three Kind A hospitals and which is a last referral hospital providing extremely specialised providers, not solely to Jamaicans however Caribbean nationals.
Moreover, the UHWI is the primary coaching establishment for medical docs and different well being professionals.
Minister of Well being, Dr. Christopher Tufton has taken quick steps to handle the governance and accountability gaps highlighted by the audit report by the appointment of an institutional evaluation committee.
The six-member committee is chaired by previous president of the Non-public Sector Group of Jamaica (PSOJ), Howard Mitchell.
The committee has been tasked with reviewing and figuring out gaps and/or weaknesses within the hospital’s company governance and administration constructions, its monetary, public procurement and administrative administration programs, in addition to its company danger administration programs.
One other process is to supply suggestions on doable modifications or changes that is likely to be essential to mitigate, handle or get rid of the dangers related to the findings of the audit and strengthen governance and accountability.
The committee also needs to present suggestions on mechanisms to implement the Auditor Common’s suggestions.
The committee is to current a report back to the minister inside 4 months with its advice for the institutional strengthening of the UHWI.
The ministry assured that it stays dedicated to the rules of fine company governance, public procurement, and the environment friendly and prudent stewardship of public sources.
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