Beautiful Virgin Islands

Tuesday, Jun 03, 2025

BVHSA audit report reveals abuse of power, unauthorised pay raises

BVHSA audit report reveals abuse of power, unauthorised pay raises

The latest audit done at the BVI Health Services Authority (BVIHSA) alleges that salary increases and compensation payouts may have been given to certain BVIHSA staff without proper authority or compliance with established procedures.

According to the preliminary audit report obtained by BVI News, there were several anomalies in the BVIHSA’s payroll for the period October 2020 to August 2021. The report said this prompted the Financial Comptroller to report the issue to the BVIHSA board and the Internal Audit Unit.

“The alleged salary increases in question also included the positions of Acting Chief Executive Officer and Acting Human Resources Manager. Instructions given to discontinuing the audit prevented the complete examination of all required files and documents,” the document read.

The audit found that BVIHSA’s payroll system is a means by which the organisation’s financial resources are being exploited through fraud and corruption.

“The exploitation discovered in this audit continues unabated because it is either facilitated, perpetrated or ignored by senior management i.e. the Acting Chief Executive Officer Cedorene Malone-Smith and the Acting Human Resources Manager, Mr Levor Lettsome,” the document further alleged.

“Collusion by both of these individuals have allowed for decisions which have circumvented internal controls and rendered the Human Resource Management system ineffective, thereby causing significant wastage of funds,” it continued.

The audit also found that one of the major weaknesses which were used to manipulate the payroll system is the use of allowance.

“The absence of documented controls for allowances leaves the amount paid to the discretion of BVIHSA’s senior management. These managers have utilised this weakness to inflate compensation packages for their own financial gain and the financial gain of a few other chosen employees,” the audit document noted.

Recommendations


Meanwhile, the document had several recommendations to improve the management systems at the BVIHSA. The first recommendation was the requirement of the repayment of all unauthorised compensation. It also recommended a hold should be placed on all increases in compensation approved by Lettsome and Malone-Smith for the period January 2020 to the present.

The audit also recommended that both the Acting CEO and the Acting HR Manager be replaced immediately. The was also the recommendation that a complete payroll audit be done to identify discrepancies in the organisation’s payroll management while implementing proper measures to address the discrepancies. The final recommendation was to review and revise the Human Resources Management (HRM) system with a view to improving the management and monitoring of the system.

The conclusion of the audit findings indicated there are several weaknesses in the HRM system.
“These weaknesses, however, does not justify the blatant abuse of the system. Some issues identified indicates a deliberate disregard for the controls in the Human Resource Management system while others indicate the absence of proper corporate governance, fraudulent and corrupt activity,” the report said.

The report also added the gross abuse of the system along with the actions taken to prevent the necessary oversight by the Internal Auditor and the Financial Comptroller allowed for the exploitation of the organisation’s limited financial resources.

“The issues identified in this audit will cause the organisation to become insolvent if actions are not taken immediately to address them,” the report concluded.

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