Three Men Arrested in $950,000 Hospital Case
Three men have been arrested over an alleged $950,000 fraud case following a complaint by the Bermuda Hospitals Board [BHB].
According to a police statement the three individuals are; a 55 year old Paget man, a 43 year old Paget man and a 39 year old Pembroke man. They have now been released on police bail
BHB said it will seek financial restitution once legal proceedings are complete.
The arrests resulted from what the BHB called an “extensive investigation of an extraordinary item” related to a renovation of Fairview Court, a section of the Mid-Atlantic Wellness Institute [MWI]
Following concerns regarding the management of the project in 2008, BHB undertook its own internal investigations and an independent review by a quantity surveyor, which resulted in a staff member being terminated.
BHB says that details were immediately forwarded to the Auditor General for a full financial investigation, and to the Police for potential fraud.
Fairview Court building at the Mid-Atlantic Wellness Institute [MWI] comprises three wards for Learning Disability service users and staff. This building was vacated in December 2007 due to significant deterioration in the building services and fabric. The project was initiated in January 2008 to clean and restore the building to clinical use. It is pictured below:
Following a delay while related investigations took place, the Fairview Court renovation is expected to be completed later this summer. The cost of the project to date is about $6 million, $4 million of which was paid by Government grant, and BHB is covering the balance.
Bermuda Hospitals Board CEO David Hill addressed the issue saying:
We expect the highest level of due diligence with our projects and internal controls have increased even further since this case came to light. We will not shy away from full investigations, full disclosure and have zero tolerance where there is a proven violation of policy.
