Financial Irregularities at KHMH, again

The Ministry of Finance requested another Special Audit for the Karl Heusner Memorial Hospital over two x -ray machines purchased. The audit report says that the board was not consulted by the former director of Financial Services when the machines were purchased both for a total of six hundred thousand dollars.  The report highlights several irregularities in the procurement of the x- ray machines and shows that the negotiations were conducted by former director of Financial Services Carlos Perrera and vlcsnap-2014-12-06-05h49m32s194vlcsnap-2014-12-06-05h49m02s173former Chief Executive Officer of the KHMH, Gary Longsworth. The x-ray machines were purchased from a company in Hong Kong via an Orange Walk based company called S. P. Group Limited and were delivered in May 2014 without documentation or warranty.

According to the audit reports, neither the CEO nor the DFS are authorized to conduct those types of transactions with a private company without first consulting with the Board of Governors. Furthermore, the auditors said they were unable to find any pertinent documentation to go along with the x-ray machines and so they were unable to determine if a fair price was paid for the units.  The report further states that in December 2014, the KHMH paid advance monies to the S.P. Group from funds allocated for the upgrading of the Intensive Care Unit and for the paving of the public parking areas; but in February 2014, the KHMH had gotten another loan from the Social Security Board for the same purpose. They allegedly used that to repay the monies delivered to S.P. Group Limited.

The audit also refers to over two hundred thousand dollars of medical supplies which were purchased but the hospital never received them.

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