A devastating audit from Jamaica’s Auditor General’s Department (AGD) has exposed systemic corruption at the University Hospital of the West Indies (UHWI), revealing massive procurement violations and fraudulent misuse of tax-exempt privileges that cost taxpayers hundreds of millions of dollars. The hospital’s board has now reported these findings to police fraud investigators and Jamaica Customs following the official tabling of the report in Parliament.
The comprehensive audit, covering fiscal years 2019-2020 through 2024-2025, uncovered what investigators termed “considerable deficiencies” in the hospital’s governance, procurement, and contract management systems. These failures, the AGD warned, created significant corruption risks that could ultimately compromise the institution’s ability to deliver quality healthcare services if not urgently addressed.
Among the most damaging findings was UHWI’s systematic abuse of its tax-exempt status to import goods for four private companies. Customs records showed items including office furniture, laundry equipment, and medical supplies falsely declared as hospital imports but actually acquired by private entities. This scheme resulted in $23.1 million in losses, with over $20 million in unpaid import duties constituting clear violations of Jamaica’s Customs Act.
The breakdown revealed staggering specifics: $28 million in laundry equipment imported for Private Company 1 created $6.6 million in revenue losses; $40.6 million in office furniture and medical equipment benefited Private Companies 2 and 3; while 40 waste bins valued at $6.6 million were imported for Private Company 4, which then sold them back to UHWI for $11 million.
Equally troubling were procurement irregularities involving 51 contracts totaling $521 million awarded to 10 contractors and one consultant without proper documentation. The audit found no evidence that these transactions met standards for transparency, accountability, or value for money. Particularly egregious were “after-the-fact” procurement processes where suppliers were invited to bid for goods and services already delivered, corrupting the competitive process entirely.
In response, the UHWI board has initiated a comprehensive review of all procurement systems, mandated regularisation or suspension of affected arrangements, and reinforced oversight mechanisms. CEO Dr. Kevin Allen has been granted three months leave to facilitate independent investigations, with Eric Hosin, former Guardian Life Jamaica CEO, appointed as interim leader.
The hospital management has acknowledged these practices violated public trust and procurement laws, confirming they’ve ceased facilitating imports for private entities. However, the scale of mismanagement suggests a long road to accountability and reform lies ahead for Jamaica’s premier medical institution.