UHWI in hot seat at PAC

The University Hospital of the West Indies’ (UHWI) so-called procurement scandal takes centre stage today as Parliament’s Public Accounts Committee (PAC) is expected to drill down to unveil additional details into the multimillion-dollar breaches that were uncovered in an audit of the health facility by the auditor general earlier this year.

In her performance audit of the hospital, Auditor General Pamela Monroe Ellis said the lack of formal procurement process and the absence of formal contracts impaired transparency, accountability and proper financial oversight in the management of the UHWI’s procurement activities.

The auditor general went further in her report to highlight that the utilisation of a retroactive process to validate procurements served to corrupt the process engaged to procure goods, services and works.

As the current leadership of the UHWI appears before the PAC, at least one civil society body is pressing for explanations on a number of unresolved issues.

Jamaica Accountability Meter Portal (JAMP) Executive Director Jeanette Calder queried: Given that many of the auditor general’s adverse findings occurred under the tenure of a previous accounting officer, does the PAC intend to exercise its authority to summon the former accounting officer to provide direct answers?

She argued that this was critical in order to ensure that the committee’s examination is not constrained by responses from the current permanent secretary indicating an inability to speak to matters predating his tenure.

Calder noted that this was a concerning outcome that would undermine the committee’s accountability mandate, as had occurred in other situations in the past.

In its deliberations today, Calder is suggesting that the committee should ascertain whether the permanent secretary has exercised the powers that had been delegated by the governor general, which allows the accounting officer to impose administrative sanctions on public officials who were involved in the decisions identified in the auditor general’s report.

Giving an example, Calder said the UHWI must be able to identify the officials responsible for approving approximately $69 million in building renovations and $12.4 million in laptop purchases, where the procurement process was only initiated after the goods and services had already been delivered.

Similarly, she said the committee should be told if anyone was held accountable for the expenditure of approximately $631 million across four companies, in circumstances where no formal contracts existed and no supporting documentation could be produced.

JAMP’s executive director is also pressing for answers as to why the UHWI relied so heavily on sole-source procurement, in light of the fact that it was intended to be used as an exceptional method, and what justification can be provided for exposing public funds to such elevated risk?

In her audit report, Monroe Ellis found that the UHWI relied on direct (sole-source) contracting for 64 per cent of its procurement activities over the period reviewed.

Calder argued that the absence of competitive procurement removes essential safeguards, noting that there was no meaningful price or quality comparison, limited transparency, and a heightened risk of favouritism, conflicts of interest, and corruption. Further, she said it also denied other businesses a fair opportunity to compete.

In terms of procurement planning and oversight failures, Calder said the audit identified the absence of approved and complete procurement plans over multiple years. “How did UHWI undertake procurement activities involving significant public expenditure without compliant, board-approved procurement plans, and what oversight was exercised by the Ministry of Health and Wellness in this regard?” Calder questioned.

The committee members are also expected to question the business relationship between JACDEN Group of Companies and the UHWI. Earlier this year, JACDEN Group of Companies said its works with the hospital were compliant, and that the audit which detailed procurement breaches at the facility “does not conclude that JACDEN caused or directed those failures”.

“The report identifies administrative and systemic failures with the UHWI’s internal procurement and customs-related processes, and does not conclude that JACDEN caused or directed those failures,” the company said in a statement in February.

The company also stated: “Any suggestion that the auditor general’s report makes adverse findings against JACDEN represents an incorrect interpretation and is not supported by the contents of the report”.

JACDEN is a healthcare and janitorial services company based in St Andrew whose founder and chairman is Dennis Gordon, who is also an Opposition member of parliament for St Andrew East Central.

Gordon, who is also a member of the PAC, ended a phone call abruptly yesterday when he was asked byThe Gleanerif he intended to show up at today’s committee meeting.

However, a reliable source toldThe Gleanerthat Gordon may recuse himself from today’s PAC sitting.