The PSA is today requesting that the Auditor General investigate the proposed axing of fraud and audit experts which would see millions of health dollars no longer recovered through overpayment or theft.

The Audit and Assurance Directorate at Health New Zealand Te Whatu Ora is a critical unit focused on ensuring some $12 billion of annual funding of the primary health care sector is paid out correctly and not subject to fraud.

But Health NZ is proposing to remove 23 roles, a cut of 28% of the workforce, along with other changes.

"Millions of dollars of precious health funds will be lost if this proposal goes ahead so the Auditor General as the watchdog of the public purse should be concerned," said Fleur Fitzsimons, National Secretary for the Public Service Association for Te Pūkenga Here Tikanga Mahi.

"We have written to the Auditor General asking him to challenge the Government’s decision which will erode rigorous oversight and good governance over billions of scarce public dollars.

"The impacted workers are highly specialised auditors and fraud investigators who save the Government millions of dollars each year. Each investigator recovers around $430,000 a year. These changes will cost money, not save money - there is no more blatant example of false economics.

"If these jobs are axed, fewer investigations and audits will take place. It just makes no sense to save money through job cuts when you weigh that against the huge loss of money that will no longer be clawed back if this team is gutted. Any costs savings from job losses will be lost through mistakes and fraud going undetected.

"The PSA strongly opposes these cuts which come at a time of huge pressure on the public health system and when the health dollar has never been scarcer because of Government decisions to underfund and cut health spending.

"If the Government is so worried about the state of its books, it should urgently rethink this reckless proposal."

Note:

Letter to Auditor General and PSA Submission opposing the cuts at the Audit and Assurance Directorate of Health New Zealand Te Whatu Ora here.

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