Rahael gets NWRHA $107M debt report

The North West Regional Health Authority (NWRHA) yesterday met the deadline set by the Health Ministry and submitted a report to Health Minister John Rahael on its $107 million debt to the Board of Inland Revenue (BIR). Although the NWRHA deducted Health Surcharge and Pay as You Earn (PAYE) from workers’ salaries, it was not paid to the BIR but used for other financial commitments.

Newsday learnt that the report provided correspondence which showed the Health Ministry was aware the NWRHA was in debt long before it became public knowledge in the media last week. The more than $100 million accrued over the past few years. NWRHA chairman, Hugh Eastman, along with acting chief executive officer (former vice-president of finance) Carl Nurse and senior vice-president Keith Toby presented the 40-page report to Rahael and Permanent Secretary responsible for the Regional Health Authorities, Reynold Cooper, at an 11 am meeting at the Ministry, Park Street. The meeting went on for over two hours.

Health Minister John Rahael described the meeting as “very cordial.” He declined to provide details since the Ministry was still reviewing the report. Rahael also could not comment on what disciplinary action, if any, would be taken. “A lot of information has been provided, we are assessing it and will get back to everyone in due course.” Newsday has learnt that the report sought to show how the shortfall in the NWRHA budget came about and contained several pieces of correspondence between the Ministry and NWRHA about the issue. The report did not identify any senior official as liable for the decision not to pay taxes to the BIR, but sources have told Newsday there was no question of misappropriation of funds. The Health Ministry last week said the NWRHA received $89 million from a loan given to the RHAs for debts, and former health minister Colm Imbert last week said the NWRHA also received $40 million for this fiscal year.

However, sources have also indicated that while the Ministry did provide funding for the NWRHA to clear its debts to suppliers and for utilities, this did not happen because the money was insufficient. At yesterday’s meeting, the NWRHA sought to justify why it paid suppliers and workers instead of taxes. “Basically the NWRHA was claiming there was a shortfall in the subvention and not enough money to pay outstanding liabilities.” Sources disclosed that the BIR had notified the NWRHA it was in arrears, and the Ministry was subsequently notified via correspondence.