Health board to investigate possible fraud

AUCKLAND: Counties Manukau District Health Board has uncovered evidence of fraud by former staff members following a independent review conducted last year.

CMDHB chairman Vui Mark Gosche announced yesterday the board considered it has evidence of potential fraud or serious wrongdoing.

‘‘The potential fraud or serious wrongdoing is historic but of concern, and the DHB’s board has decided to seek full investigation of these matters by referral to the Serious Fraud Office,’’ he said.

The evidence comes as the result of further investigation and legal advice following the recent release of the Beattie Varley report.

In July 2017, the Ministry of Health commissioned an urgent independent review to investigate financial management practices and management culture at CMDHB prior to December 2016.

The ministry appointed forensic accounting firm Beattie Varley, Deloitte and Mike Heron QC to investigate expenditure, financial management and management culture at CMDHB for the financial years 201415, 201516 and 201617.

The Beattie Varley report was released in September of this year and did not draw any conclu sions of wrongdoing, or find there were matters that warranted further investigation by other authorities.

However, the ministry’s chief legal adviser said it did raise questions about the way staff conduct themselves in the health sector.

The report points to a lack of openness and transparency in some capital expenditure decisions related to the lecture theatre expansion of Ko Awatea and in the financial reporting associated with the APAC conference.

The report concluded the expansion of Ko Awatea was presented to the Audit Risk and Finance Committee at a projected cost well below the actual expected value.

Pricing options showed the project was expected to cost upwards of $15 million, but the report said anyone reading the material presented to the audit committee could see the project would cost far more than that.

Beattie Varley also examined how an Australasian health conference, run between 2014 and 2016, went from running surpluses to a near milliondollar deficit.

In a statement, the CMDHB said it will not be making further comment to avoid prejudice to any investigation. — NZME