Managing Director of the Public Hospital Authority (PHA) Herbert Brown has been suspended pending an investigation into the alleged mishandling of a multi-million dollar bond.

According to sources, the PHA was seeking to raise funds, which Mr. Brown was overseeing.

It is alleged that he mishandled a more than $30 million bond and placed the government in a precarious position it now has to defend.

A full investigation has been launched.

In the meantime, Mr. Brown has been suspended and according to sources isn’t expected back in office until February 3.

The Bahama Journal has also learned that if the outcome of the investigation is not favourable for the managing director, he could be fired.

When asked about the situation, PHA Chairman Frank Smith initially said he had no comment.

He did, however, say that the matter was in its “premature” stage.

The Bahama Journal attempted to reach Health Minister Dr. Perry Gomez for comment; however, calls were not returned up to press time.

The PHA is the public corporation responsible for the management and development of the public hospital system.

Its hospital services include Princess Margaret Hospital (PMH), Sandilands Rehabilitation Centre and the Rand Memorial Hospital.

Mr. Brown’s suspension is reminiscent of last year’s dilemma over the misappropriation of funds at the National Insurance Board (NIB) which saw its chairman Algernon Cargill terminated.