Watchdog reassures the whistle-blowers

The Government’s top financial watchdog has assured health sector whistle-blowers their identities will be protected.

Deputy Auditor-General Greg Schollum made the comments in a letter sent to DHB chief executives and board chairs on May 25.

The letter outlines the main matters arising from the 2016-17 audits of district health boards, with particular mention given to the Waikato DHB.

Nigel Murray resigned as Waikato DHB chief executive in October, part way through an investigation which found he had misspent health dollars.

Concerns about Murray’s spending were first raised by three senior executives: Maureen Chrystall, Ian Wolstencroft and Neville Hablous. The three were identified on the Waikato DHB’s intranet.

Schollum said if senior staff had concerns about financial mismanagement or misuse of public funds, they should bring it to the attention of their auditor.

A State Services Commission investigation into Murray’s spending found some Waikato DHB staff felt intimidated by Murray. It was later reported Murray’s lawyer requested witness statements provided to the SSC as part of its inquiry into Murray.

The SSC has said releasing the statements could impact future state sector inquiries.

Schollum said the auditor would treat the sources of any information regarding the misuse of public funds in confidence.

‘‘Holding information of this nature back from the auditor exposes the entity to ongoing risk and compromises the effectiveness of the audit,’’ he wrote.

‘‘Staff could also consider using protections provided by the Protected Disclosures Act 2000.

‘‘All DHBs should ensure that their policies and processes for protected disclosures are up to date, easily accessed and understood by their staff.’’

The 2016-17 audit of the Waikato DHB raised several concerns about Murray’s expenses, including the approval process, business purpose, and lack of supporting documentation, particularly in relation to travel.

The Waikato DHB’s audit status was downgraded by Audit New Zealand in 2017 following revelations Murray had misspent health dollars. Murray spent $120,608 on unjustified travel and accommodation during his threeyear stint at the Waikato DHB.