Board chair: West Wimmera service well placed

West Wimmera Health Service board chair Anne Rogers is confident organisational, governance and policy changes would prevent a recurrence of behaviour outlined in an anti-corruption report involving the agency.

Mrs Rogers, in response to findings of an Independent Broad-based Anti-corruption Commission investigation, said the ‘comprehensive’ changes had occurred since the 2017 resignation of former chief executive John Smith.

She added the health service had also employed new leaders including managers, directors and officers and had appointed new board members.

“West Wimmera Health Service has implemented numerous changes and initiatives to prevent a recurrence of the type of behaviour detailed in the report,” she said.

IBAC’S Operation Meroo found the former chief executive exploited weaknesses in the agency’s systems and controls for his own financial benefit and benefit of some close associates.

It revealed he awarded a contract worth almost $1-million to a consultancy while in a personal relationship with one of its directors.

It also found the organisation had a culture which discouraged employees from speaking up, its board of directors failed to govern effectively and did not ‘adequately’ oversee the former chief executive.

John Smith, who died from an illness in Adelaide last year, was West Wimmera Health Service chief executive when the service formed in 1995 until 2017. He was previously Nhill Hospital chief executive for 30 years.

Mrs Rogers said the changes included revised and strengthened governance, procurement and employment-related policies as well as a review of all supplier contracts to ensure they met regulatory requirements and provided value for money.

“The board has all but completely changed since around the time which the behaviour detailed in the report is understood to have ceased,” she said.

“Each year the board assesses its effectiveness in discharging all duties relevant to its performance and compliance with regulatory requirements. This process includes the board benchmarking itself against other health services of a similar size.

“An annual program is then developed to address any gaps identified in the above process.”

The health group has also formed a procurement-review committee, project-control group and peer-support group for staff in the past four years.

IBAC also identified issues with Department of Health and Human Services in overseeing the health service.

It reported the department failed to take sufficient action despite ‘red flags’ regarding the conduct of the former chief executive.

The report also found the former chief executive, without verification, inappropriately authorised payment of invoices to a company his relative owned several years after the work was allegedly undertaken.

It found he also failed to declare and manage the conflicts of interest.

It detailed how the former chief executive inappropriately spent the health service’s money on travel and hospitality, and regularly failed to comply with policies and procedures.

IBAC Commissioner Robert Redlich said public-sector employees were expected to maintain strict separation between work-related and personal financial matters and only use public financial resources for work-related purposes.

“The failure of the former chief executive to do this resulted in significant costs to the health service,” he said.

“Any misuse of public funds impacts communities and damages trust in public institutions, services and government.

“The public harm is particularly acute in health care where the misuse of funds comes at the expense of delivering vital services affecting people’s quality of life.”

IBAC recommended the health service and the Department of Health address the vulnerabilities identified in Operation Meroo.

These include strengthening board capability and oversight, procurement practices and conflict-of-interest management.

The Operation Meroo special report is available on IBAC’S website, www.ibac.vic.gov.au.