Probe deepens into UHWI tax exemption abuse

Focused on revenue recovery, the Jamaica Customs Agency (JCA) has launched an audit of the last three years to assess breaches by the University Hospital of the West Indies (UHWI) involving misuse of its tax-exempt status to import goods for private companies.

JCA Acting CEO Kirk Benjamin told Parliament’s Public Accounts Committee (PAC) on Tuesday that if the probe uncovers fraudulent activities, the agency would extend its investigations to the last seven years.

Benjamin was appearing before the committee to respond to queries regarding the findings of a performance audit of the hospital done by the Auditor General’s Department (AuGD). Tabled in January, the report revealed a litany of procurement breaches and violations of the Jamaica Customs Act.

It found that UHWI inappropriately utilised its tax-exempt status to import goods for four private companies, resulting in losses totalling $23.1 million.

Benjamin told the committee that the audit is expected to begin next month and is set for completion by March 2027.

He also indicated that the outstanding reports for three of the private firms that benefitted from the UHWI’s tax exempt status would be completed in another two weeks.

The Integrity Commission has joined the police and the JCA to examine the hospital’s use of its tax-exempt status.

Acting UHWI CEO Eric Hosin told the committee at an earlier meeting that the anti-corruption body and the police had the files in relation to four companies – Supreme Laundry Services, Willman Sales, Scientific Medical Services, and JACDEN Limited.

WHO SIGNED THE DECLARATIONS?

At Tuesday’s PAC meeting, members wanted to know who signed the declarations for the hospital to apply its tax-exempt status to benefit private companies.

Benjamin told the committee that for Willman Sales and Scientific Medical Services the signature of the current CEO, Fitzgerald Mitchell, was affixed. Benjamin said in the case of JACDEN and Supreme Laundries, the signature of the former CEO, Kevin Allen, was on the documents.

However, he noted that while the former CEO Allen’s signature was on the two documents for the period 2023-2024, the former CEO had left the UHWI in 2022.

While the JCA would normally receive a notification when heads of agencies had moved on, Benjamin said the agency was not notified that Allen was no longer with the UHWI.

In light of the foregoing, Benjamin argued that it was reasonable to assume that there were pre-signed declarations in the name of the former CEO as he was no longer at the helm of the hospital.

Hosin said all the records indicate that the exemptions granted to private companies through the hospital were not presented to the board for approval.

Members of the PAC voted unanimously on Tuesday to invoke Parliament’s legal powers to compel UHWI CEO Mitchell to attend its June 2 meeting after he signalled that he would not appear before the oversight committee. The PAC is taking steps to serve a warrant on Mitchell and warned of potential criminal sanctions if he refused to show up.

Allen, the former CEO who was also a no-show at the meeting, will also be ordered to attend the June 2 meeting.

The former UHWI Chairman Wayne Chai Chong advised the committee that he could not have attended Tuesday’s meeting as he was travelling.

edmond.campbell@gleanerjm.com