JACDEN’s $10-million payment raises questions

Questionsover how a private company was able to pay more than $10 million in customs duties on goods declared under the University Hospital of the West Indies (UHWI) intensified on Tuesday, after Government Member of Parliament (MP) Heroy Clarke pressed hospital officials at the Public Accounts Committee (PAC) for answers that remained elusive.

The issue centres on a payment of approximately $10.8 million attributed to JACDEN, a company in which Member of Parliament for St Andrew East Central Dennis Gordon is a principal. The payment was reportedly made to Jamaica Customs in relation to goods declared under UHWI’s name, as part of the wider controversy surrounding the hospital’s use of its tax-exempt status.

The matter forms part of the PAC’s ongoing probe into findings from the Auditor General, which revealed that UHWI’s tax-exempt status was used to facilitate imports for private companies, resulting in significant losses in unpaid duties.

During Tuesday’s sitting, Clarke questioned the authority under which any private entity could settle duties on behalf of a public institution, particularly in circumstances where the hospital was listed as the importer.

“My question to you, Sir… on what ground, what condition, what authority, that some goods that were brought in the name of UHWI, that a third party, a private entity, would have gotten the authority to pay duty on behalf of UHWI,” he asked.

Responding to the concerns, Acting Chief Executive Officer at UHWI Eric Hosin maintained that no such arrangement had been sanctioned under his tenure.

Clarke, however, pointed to documentation before the committee indicating that the payment had in fact been made, despite UHWI being named in the importation process.

“On what grounds did this company, JACDEN, pay over $10 million to Customs, Customs accepting that money in the name of UHWI — because the goods belong to UHWI?” he pressed.

Hosin acknowledged that he could not explain how the transaction was executed.

“I don’t know. You’d have to speak to Customs,” he said.

The exchange has deepened concerns about possible gaps in oversight, particularly in relation to how UHWI’s name and tax-exempt status were used in transactions involving private entities.

Clarke also raised the issue of a reported breach under the Customs Act, noting that UHWI had been cited for false declaration in connection with the importation.

“The next thing, the document here, page five: False declaration. UHWI is cited for false declaration in breach of section 209 of the Customs Act, and they have advised UHWI that they can object to the situation. But before they can object, Mr Chairman, they have to make a deposit. I am asking, through you, Sir, to the persons here, have you formulated an objection since? And if so, did you pay over to Customs that deposit that will guarantee you that the objection will be accepted?” Clarke queried.

Hosin indicated that no such action had been taken.

The matter has taken on added political significance given Gordon’s connection to JACDEN, placing the Opposition MP at the centre of the unfolding controversy. The issue has already spilled into Parliament’s Ethics Committee, which has moved to revisit aspects of Gordon’s earlier disclosures.

As the PAC continues its probe, Clarke signalled that further clarity will be required not only from UHWI, but also from Jamaica Customs, particularly regarding how payments from third parties were accepted in transactions involving a public institution.