As the crisis at the University Hospital of the West Indies (UHWI) deepens, Parliament’s Public Accounts Committee (PAC) was told, on Tuesday, that the institution owes more than $40 billion in taxes and has no formal repayment plan in place, all while operating on a temporary Tax Compliance Certificate (TCC).

The disclosure came during the PAC’s ongoing examination of the auditor general’s report into procurement practices at the hospital, adding a new layer of concern about the institution’s financial management and statutory compliance.

Responding to questions from PAC Chairman Julian Robinson, UHWI’s Acting Chief Executive Officer Eric Hosin confirmed the scale of the outstanding obligations.

Hosin told the committee, that the $40 billion figure includes accumulated interest and penalties and indicated that the value, excluding those additional charges, stands at roughly $18 billion.

The revelation prompted immediate concern from committee members, particularly around whether statutory deductions from employees’ salaries had been properly remitted to agencies such as the National Housing Trust (NHT) and National Insurance Scheme (NIS).

Robinson underscored the potential implications for workers.

“It would be important for us to know, particularly on the employee side, because this would impact people who might go to NHT seeking a benefit, people who are retired and would go to the NIS office and can’t get a benefit,” he said.

Hosin, however, sought to reassure the committee that employees have not been disadvantaged, stating that the hospital is now current on those particular payments.

“Just to let you know that we are now current with our payment for NIS and NHT. Every month we are paying that amount. However, we don’t have enough money to pay the other tax obligations,” he explained, adding later that the hospital is behind with its income tax and education tax payments.

Questions persisted about how such a significant debt could have accumulated over time. Hosin acknowledged that the arrears date back several years, though he was unable to provide a precise timeline during the sitting.

Compounding PAC members’ concern was the hospital’s tax compliance status.

Despite owing tens of billions in outstanding taxes, Hosin told the committee that UHWI is currently operating under a temporary Tax Compliance Certificate (TCC), which is set to expire on May 6. Crucially, Hosin confirmed that there is no formal payment arrangement in place with Tax Administration Jamaica (TAJ) to address the debt, a point that drew sharp concern from members of the committee.

Robinson questioned how the hospital could maintain tax compliance status in the absence of a structured plan to settle its obligations, noting that such arrangements are typically required for entities with significant arrears.

Hosin acknowledged that discussions around resolving the issue are still at an early stage, indicating that the hospital intends to first engage the Ministry of Health and Wellness before approaching the Ministry of Finance for guidance on how to treat the outstanding balance, including the possibility of addressing accumulated interest and penalties.

Hosin also told the committee that UHWI has operated for an extended period without a valid TCC of its own, though no clear timeline was provided. That revelation raised further questions about the hospital’s ability to independently import goods, particularly in light of earlier findings that its tax-exempt status had been used in transactions involving private entities.

Committee chairman Robinson indicated that establishing how long the hospital has operated without full tax compliance will be critical to the committee’s work, particularly in assessing whether the failure to meet statutory obligations may be linked to the procurement irregularities now under review.

He also pressed for a detailed breakdown of the outstanding sums, noting that the committee needs clarity on how much of the debt relates to statutory deductions, such as NHT and NIS contributions, versus other tax liabilities.

Hosin, in response, maintained that employees have not been affected, again explaining that the hospital is now current on NHT and NIS payments and that arrangements have been put in place to ensure no worker has been denied access to benefits.

Despite that assurance, Robinson insisted that the committee requires a comprehensive ageing report on the debt, including the period over which it accumulated and the specific components of the liability, particularly any sums tied to employee deductions.