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We told you about the KHMH special audit last night. At 77 pages long it details a good many of eyebrow raising procedural irregularities in just a few product acquisitions.

And in the audit we found that the KHMH made a surprising number of those acquisitions from a company all the way in Hong Kong. We tried to find out more about Spring Holdings:…

Jules Vasquez Reporting…..

Spring HK Holdings Ltd – that company name comes up many times in the audit. The HK stands for Hong Kong, and their address says they are headquartered in this towering building, the Trend Center.

It says they are in Room 2015 – but we found multiple businesses all over the internet using that same address – including this one, Astra Defence a Swiss arms company.

Indeed the audit notes that quote: "We attempted to validate the existence of Spring Holdings Limited Hong Kong. We are currently awaiting a response."

They add that the KHMH conducted a research of Spring Holdings and its transactions with the KHMH. And, get this, quote, "According to the CEO the result revealed uncertainties about the company's physical location and the price paid for the X-Ray Machines."

But Spring Holdings continued to be a buyer of choice. The KHMH paid them 187,539 dollars and 24 cents in advance for items that weren't delivered to the KHMH at the time of the audit.

CEO Gary Longsworth told the auditors it was not consistent with the policy of the KHMH to make full payments before items were received.

But he says it was done because the Director of Financial services circumvented his office and instructed the approval of the payment.

The audit report says that the relationship between Spring Holdings and the KHMH started in 2013. We'll have more on the audit tomorrow…