25 June 2001 Media Statement

District Health Board Payments

State Services Minister Trevor Mallard said he has referred the matter of a payment made by Waitemata Health to its chief executive, to the Auditor General.

The move follows investigation by the State Services Commission as to whether there were any payments made to any incoming transitional district health board chief executives that were not provided for in either the Health and Hospital Services (HHS) employment contracts, or in the District Health Board transitional employment agreements.

"The State Services Commission has advised me that the Waitemata District Health Board made a payment that did not receive the consent of the State Services Commissioner, and was not provided for in either the HHS employment contract or the transitional DHB employment agreement. I have referred this matter to the Auditor General. I have asked the Auditor General to consider the validity of the payment and methods of recovering the money.

"The State Services Commission has also advised me of one other payment that the State Services Commissioner did not give his consent to. The State Services Commission is investigating this case and will report to me when they have established the circumstances of this payment. I will not name this health board until the legality or otherwise of the payment has been assessed.

"In the case of the other 19 district health boards, I have been advised that no such payments were made and the proper processes were followed.

"The chief executive positions which are significantly larger and more complex than the previous HHS chief executive positions, were independently assessed and once each board had developed a proposal, the consent of the State Services Commissioner was sought," Trevor Mallard said.

ENDS

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