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USVI hospital cash seized to pay outstanding taxes
Published on May 19, 2014 Email To Friend    Print Version

ST THOMAS, USVI -- While the Governor Juan F. Luis Hospital (JFLH) in the US Virgin Islands continues to grapple with serious financial challenges, the Virgin Islands Bureau of Internal Revenue took action against the hospital’s cash assets as part of an ongoing effort to collect outstanding taxes.

Government House confirmed that the action was taken but a compromise was arrived at by the end of the day on Friday.

As part of an ongoing effort to assist the JFLH during its fiscally challenging times, Governor John de Jongh authorized the Office of Management and Budget and Department of Finance on Friday to again make an advance appropriation release to the JFLH in the amount of $1.2 million.

Additionally, members of the administration’s financial team engaged in discussions with bank officials to ensure that the payroll checks issued on Thursday would be honored. It is expected that additional steps will be taken next week to ensure that the next payroll this month is also met.

Throughout this process, the administration has kept the Legislature informed about the fact that JFLH was utilizing its Fiscal Year 2014 appropriation at an accelerated rate and at that rate, the JFLH’s annual appropriation would be exhausted well before the end of the fiscal year.

The emergency requests from JFLH for Fiscal Year 2014 allotment advances has substantially disrupted the central government’s cash flow planning. Throughout the fiscal year the administration has advised members of the 30th Legislature at various times of JFLH’s precarious situation and, as recently as last week, the administration advised the members of the 30th Legislature that the situation at the JFL Hospital had become worse and that, by June 2014, JFLH would have been allotted its entire Fiscal Year 2014 appropriation.
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