JACDEN says works with UHWI compliant; audit report does not blame it for procurement breaches

JACDEN Group of Companies says its works with the University Hospital of the West Indies (UHWI) are compliant and a recent audit report on procurement breaches at the facility “does not conclude that JACDEN caused or directed those failures”.

“The report identifies administrative and systemic failures within UHWI’s internal procurement and customs-related processes and does not conclude that JACDEN caused or directed those failures,” it said in a statement issued on Monday.

“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. Its chairman is Dennis Gordon, the founder, who is also the opposition People’s National Party (PNP) Member of Parliament for St Andrew East Central.

The statement follows the Auditor General’s report, tabled in Parliament on January 13, which highlighted a series of procurement breaches at the UHWI, including that the hospital did not provide procurement documentation for 51 contracts, with a total value of $521 million.

The audit also revealed that the hospital used its tax exemption to import office furniture, laundry, and medical equipment for four private companies, which were not named, causing losses totaling $23.1 million in unpaid customs duties.

Nationwide News Network reported on February 3 that one of the entities, 'Private Company 2' is JACDEN Limited, citing documents it said it saw.

The Auditor General’s report noted that in 2024 the hospital "misused" its tax-exempt status to import $40.6 million in office furniture and dialysis machines for a company referred to as Private Company 2, which it said received tax relief valued at $10.1 million.

JACDEN, which said it noted recent media reports on the audit, did not dispute that Nationwide's report. It also did not explicitly confirm participation in any of the transactions identified in the audit.

A JACDEN representative told The Gleaner on Tuesday to contact Gordon with queries.

The Gleaner, in an effort to verify which companies were involved in the tax-exempt issue, contacted Gordon on January 15, but the lawmaker declined to comment, saying: “I have nothing to say… Please don’t call me back.”

JACDEN said the Auditor General’s report "does not name JACDEN Group of Companies, nor does it make any finding of fraud, misconduct, or wrongdoing against JACDEN".

"JACDEN’s engagement with UHWI is conducted under formal arrangements and in accordance with the policies and all applicable procedures. All services provided are properly documented and form part of institutional engagements," it added.

Political tensions quickly surfaced after the audit was published as Young Jamaica, the youth arm of the governing Jamaica Labour Party (JLP), dismissed criticisms by Opposition spokesman on health Dr Alfred Dawes, who had blamed procurement failures on inadequate oversight.

“Young Jamaica views the statement issued by Dr Dawes calling for independent oversight of the operations of UHWI as a slap in the face of the intelligence of the Jamaican people,” the group said on January 15, calling on Dawes to disclose any ties to companies referenced in the report.

Dawes, the MP for St Catherine South Eastern, responded on January 17, denying any business links with JACDEN. He was referring to the screenshot of his image posted on JACDEN's website with the description "consultant."

“I have no affiliation with JACDEN. ...Four years ago, I was engaged to see whether or not I would provide medical services in my capacity as a consultant general laparoscopic and bariatric surgeon at the facility. Those talks fell through. So, whoever had my name up as consultant they did not put my proper title," he said in an Instagram post.

The controversy intensified when Government Senator Marlon Morgan criticised Opposition Leader and PNP President Mark Golding for not removing Gordon as a member Public Accounts Committee, a parliamentary body that scrutinises auditor general's reports and from the chairmanship of an internal party group.

Morgan said Golding’s inaction “shows that he cannot be taken seriously when he speaks on issues of probity, accountability, and transparency.”

At a January 29 news conference, Golding, in response to media queries, said there was no official report naming Gordon or his company as involved in any wrongdoing.

“The only formal investigative report we have is the Auditor General’s report. And that report does not name any specific company as being involved in anything,” Golding said. “It points out that certain companies appear to have received certain benefits and raises real concerns about that. And when those matters are formally investigated, the chips will have to fall where they land.”

Pressed on whether he had raised the matter with Gordon, the opposition leader said he would not disclose the details of discussions he had with Gordon. “Suffice to say, he knows my position because my position is not new. And he agrees with my position that chips must fall where they lie, if there's anything in any kind of allegation," he said.

He added: “At this juncture, he (Gordon) has maintained that he has done nothing wrong. And I have no reason to doubt that because I haven't seen any official investigation, any official report suggesting otherwise. And I'm not prepared to engage in a speculative chase after any individual based on rumour or based on conjecture or based on information, the source of which we have no knowledge of.”

Meanwhile, immediately after the report was published, the UHWI Board of Directors said it had referred "specific matters" from the audit to the Jamaica Constabulary Force’s Fraud Squad and the Jamaica Customs Agency. The hospital also said CEO Fitzgerald Mitchell was on three months’ leave to facilitate independent investigations. Board member Eric Hosin is acting CEO.

Minister of Health and Wellness Dr Christopher Tufton has established a six-member Institutional Review Committee, chaired by businessman Howard Mitchell, to examine corporate governance, financial management, and procurement systems at UHWI.

The committee is expected to submit recommendations within four months to strengthen oversight and ensure compliance with the procurement law.

The identities of the other three private companies referenced in the tax-exempt finding have not been publicly disclosed. The Gleaner submitted questions to two companies on January 30, seeking confirmation of any involvement.

On Monday, the newspaper filed an Access to Information request with the UHWI for the identities of all the companies referenced in the Auditor General’s report.

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