Board goes to ground as crisis deepens

‘‘The board’s been found wanting in one aspect of governance and this is the oversight of the chief executive’s expenses and travel.’’ Sally Webb

Waikato DHB members are diving for cover following the release of a damning report into disgraced health boss Nigel Murray’s spending.

Their move comes as major discrepancies emerge over former board chairman Bob Simcock’s account of checks done on Murray’s work history.

The State Services Commission investigation found Murray was ousted from a top health job in Canada prior to his appointment as Waikato DHB chief executive in 2014.

Murray spent $218,209 of public health dollars on travel, accommodation and related expenses during his three-year tenure at the Waikato DHB.

State Services Commissioner Peter Hughes said more than half of Murray’s claims for travel and accommodation were unjustified.

The investigation also raised serious questions over the Waikato DHB, concluding its process for hiring Murray were flawed and board members were wrong in accepting Murray’s resignation in October instead of pushing for a disciplinary process.

Board members approached for comment by referred all media inquiries to the board’s acting chair Sally Webb.

Webb said no board members had offered to quit in the wake of the SSC investigation.

‘‘The board’s been found wanting in one aspect of governance and this is the oversight of the chief executive’s expenses and travel,’’ she said.

‘‘I’ve given personal assurances, while I’m there, it certainly won’t happen again.’’

The SSC investigation revealed Murray was ousted from a top health job in Canada because of concerns over his management and leadership skills.

However, the DHB was unaware of Murray’s demotion from his role as president and chief executive of Fraser Health in May, 2014 because it failed to talk to Murray’s former employer.

Simcock on Thursday attempted to front foot the fallout from the SSC report, saying extensive efforts had been made to check Murray’s work record before hiring him in June, 2014.

Simcock also defended his oversight of Murray, accusing the health boss of leading a double life, ‘‘including multiple relationships, in multiple countries with multiple mobile phones’’.

In 2014, a 1200-page report was released raising serious questions over Murray’s leadership at Fraser Health.

The report was commissioned by then British Columbia Health Minister Terry Lake.

In an interview with RNZ, Simcock said he had spoken to the person who had commissioned the review of Fraser Health and was not told about Murray’s dismissal.

However, Lake, who commissioned the Fraser Health review, said he had not spoken to Simcock or anyone in New Zealand about Murray.

Lake said the Waikato DHB may have spoken to Deputy Health Minister Stephen Brown.

‘‘I would not have spoken to anyone about employment issues as I do not believe that was my role as minister,’’ Lake said.

‘‘The review was initiated because of consistent failure to meet fiscal and other objectives ... I think one might have inferred from the (Fraser Health) review that the former CEO had issues.’’

Simcock declined requests for an interview on Thursday.

He could not be reached for comment yesterday. Webb said Simcock and the board’s trust in Murray had been misplaced.

‘‘From my perspective, the responsibility of the chair is to ensure duty of care is carried out and that is happening at Waikato now,’’ she said.

‘‘The SSC report outlines that there was a lack there.

‘‘However, that was balanced against the fact that Bob [Simcock] and the board trusted a man who turned out not to be trustworthy’’.

Simcock and current board members Pippa Mahood, Sally Christie and Tania Hodges were part of an eight-member panel tasked in 2014 with overseeing the early stages of recruiting a new chief executive.

Mahood didn’t respond to media requests for comment, while Christie and Hodges referred inquiries to Webb.

Christie, who has been on the board since 2001, said she had no intentions of stepping down, but would not directly answer a question about whether the public should still have confidence in her.

‘‘There’s an election in October next year, so they can decide – that’s the process,’’ she said.