Documents missing for $521m in contracts, UHWI admits tax-exempt import abuse

The University Hospital of the West Indies (UHWI) failed to provide procurement documentation for 51 contracts valued at more than $521 million to auditors from the Auditor General’s Department, preventing a full assessment of compliance with procurement regulations.

This was among the major findings in a performance audit of the UHWI tabled in Parliament yesterday.

Auditor General Pamela Monroe Ellis said the absence of key documents made it impossible to determine whether the contracts met required standards of transparency, accountability, and value for money.

According to the report, essential records – including requisitions, tender documents, bid submissions, evaluation reports, and other procurement files – were not available for review.

The audit also placed the UHWI under intense scrutiny for misusing its tax-exempt status to facilitate imports for private companies, resulting in revenue losses of $23.1 million.

Customs records revealed that items such as office furniture, laundry equipment, and medical supplies were declared as hospital imports, but inventory records showed they were not acquired by the UHWI and were instead obtained by private entities.

The auditor general said this misrepresentation breached the Customs Act, resulting in more than $20 million in unpaid import duties.

Section 209(1) of the Customs Act prohibits false declarations on Customs documents, with violations subject to fines or prosecution.

One example cited involved the importation of laundry equipment valued at approximately $28 million for a private company, which resulted in a revenue loss of $6.6 million. The UHWI also paid $1.9 million in import duties and charges, bringing the total loss to $8.5 million.

In a similar activity, the UHWI facilitated the import of office furniture and medical equipment valued at $40.6 million for Private Company 2 as well as cups and dishes worth $1.41 million for Private Company 3, resulting in revenue losses of $10.7 million.

In a staggering revelation, the audit report highlighted that the UHWI subsequently purchased the cups and dishes from Private Company 3 for a price of $6.9 million.

Additionally, the UHWI enabled the import of 40 waste bins for Private Company 4, valued at $6.6 million, saving the company $3 million in Customs duties. The UHWI then purchased the bins for $11 million and covered the remaining import duties and charges of $980,049.

In its initial management response in August 2025, the UHWI confirmed that it had stopped facilitating imports for private entities using its tax-exempt status, acknowledging that the practice violated public trust and procurement law.

In October 2025, the hospital reiterated its acceptance of the audit’s findings and said it was exploring measures to prevent a recurrence.