Media Release

Date: 21 August 2007

Fraud Conviction Puts Waikato DHB Suppliers on Notice

A Hamilton company director has pleaded guilty to fraudulently overcharging Waikato District Health Board over a 17-month period.

In the Hamilton District Court today (Tuesday), Maryanne Joyce Griffin, 47, of Tamahere admitted falsifying 35 supplier invoices in an attempt to conceal the overcharges. Waikato DHB has since cancelled its contract and recovered $165,500 from the company.

Griffin, a director of Glenview Electrical Services Ltd, was convicted on a charge of altering a document and on another charge of using an altered document. She will be sentenced on September 24. The maximum sentence in relation to both charges is 10 years' imprisonment.

Waikato DHB health services general manager Jan Adams said the offending was picked up by the DHB's internal audit team in August last year.

"This was a fraudulent use of public money and can not be tolerated.

"This conviction puts all our suppliers on notice that we are vigilant when it comes to spending taxpayers' money appropriately and we will take action where we think it's necessary."

Waikato DHB has more than 2000 suppliers and spends more than $200 million a year on goods and services used across the organisation and within the seven sites operated by its provider arm, Health Waikato.

Mrs Adams paid tribute to the work done by DHB staff including internal audit manager Ian Cowley and the contracts' facilitator.

"They've also identified there may be other cases where suppliers have been overcharging us," she said.

"We will not hesitate to bring the police in where we think there is fraud involved."

Glenview Electrical was one of three preferred electrical service providers to the Waikato DHB. A contract for services started on July 1, 2005 and more than $670,000 in expenditure was billed to the DHB over a 17-month period.

In August last year, Glenview Electrical started invoicing Waikato DHB for electrical services at a higher hourly labour rate than that specified in the contract.

Waikato DHB asked Glenview Electrical to cancel the 11 invoices concerned and to resubmit amended invoices using the lower contracted rate.

When Glenview Electrical resubmitted the invoices, the totalled invoiced dollar amounts were the same.

The company had increased the number of hours and/or the material charges to offset the "loss" associated with the correct contract charge out rate, said Mrs Adams.

The DHB investigation established that the percentage overcharge for materials on some invoices issued by Glenview Electrical was as high as 78 per cent.

Mrs Adams said various initiatives are currently planned to improve Waikato DHB's supply chain. That includes a focus on contractual and supply arrangements with a view to developing the most effective supply chain model appropriate for the DHB's requirements.

ENDS