Assertions by the Bermuda Hospitals Board chairman regarding the investigation into their former Chief Financial Officer were inconsistent with the facts, according to Auditor General Heather Jacob Matthews.

Former CFO Delia Basden had been put on administrative leave last March under Ms Matthews’ recommendation, but BHB chairman Jonathan Brewin announced two weeks ago that a review by the Department of Internal Audit found she had acted “properly, appropriately and with all professional integrity”.

Mr Brewin, however, said she had tendered her resignation due to her prolonged time out of the office and that interim CFO David Thompson would continue in the post until the board determines the way forward.

In a release yesterday, Ms Matthews challenged Mr Brewin’s statement, saying the audit had raised issues about management control systems at the BHB.

“The Auditor General takes exception to the chairman’s comment and remains very concerned that a significant, unsubstantiated financial transaction was admittedly concealed in BHB’s financial statements ‘because we did not want it visible to the public’,” she wrote.

“The Auditor General confirmed that this irregularity was the basis on which she commissioned an Internal Audit in February 2013 to conduct a review of the operations of BHB and its subsidiary Healthcare Partners Limited and, in addition, recommended that the CFO be placed on administrative leave.

“The Auditor General noted that the purpose of the Internal Audit review was to obtain reasonable assurance that BHB’s management control systems were adequate and operating effectively.”

She said the comments by Mr Brewin were not consistent with the findings of the Internal Audit report, or the action plan that was agreed to by the BHB’s management to address the shortcomings that were discovered.

“The Auditor General notes that the final report issued by the Department of Internal Audit in August 2013, highlights BHB’s ‘weak control environment and inadequate corporate governance framework which contributed to a lack of proper management oversight, reduced accountability and the inability of the Board to effectively fulfil its mandate’.”

Ms Matthews added that a synopsis of matters arising from the Internal Audit review will be reported in the Auditor General’s Annual Report.

Mr Brewin responded to the Auditor General’s statement yesterday afternoon, saying that the board undertook its own review and investigation following the suspension of the audit of the board’s 2011/12 financial statements.

“Its statement reflected its findings and position,” Mr Brewin said. “The Board fully accepts the issues raised in the review of the Department of Internal Audit with regards to its corporate governance framework and weak control environment in BHB, and is implementing the recommendations in full.”