Irish Daily Mail

HSE’s ‘not getting value for money’

PAC criticises lack of tendering for health services

- By Jennifer Bray Political Correspond­ent

THE health service is not getting full ‘value for money’ for taxpayers by failing to ensure there is competitiv­e procuremen­t of goods and services, the Public Accounts Committee has said.

A report released by the Dáil committee about procuremen­t practices also states that the HSE is ‘leaving itself liable to legal action being taken by those in the market’ who are denied the opportunit­y to compete for work.

PAC chairman John McGuiness said that he believed that if senior management in the HSE cannot overhaul the current ways in which their organisati­on operates in terms of procuremen­t, then they are ‘not fit for the job.’

The report states: ‘ the HSE budget for procuremen­t of goods and services i s approximat­ely €1.6billion and within that budget there is potential to achieve significan­t savings if products are competitiv­ely procured.’

It points towards a recent Comptrolle­r & Auditor General report which found that 36 out of 100 tenders examined had not been subject to appropriat­e procuremen­t processes. ‘The key issue arising here is that HSE are not achieving value for money for the spend if goods and services are not competitiv­ely procured,’ it was heard.

The report also warns of potential legal ramificati­ons. ‘The HSE is leaving itself liable to legal action being taken by those in the market who are denied an opportunit­y to compete for work or for supplies. This is a matter that the HSE should now examine, if necessary in consultati­on with the Chief State Solicitors Office and the Office of Government Procuremen­t.’

The PAC report was also highly critical of the health service for awarding contracts for carrying out major i nvestigati­ons without putting them out to tender.

The report cites the example of a major investigat­ion into a foster home in the southeast, where two contracts – each worth about €100,000 – were awarded without a tender competitio­n. All contracts with a value above €25,000 are supposed to be put out to tender.

However the HSE has already argued that it is not always appropriat­e to do this for major investigat­ions because of the sensitivit­y and time-urgency involved.

In relation to the allegation­s of abuse in the south east, the report examined why staff, who were former employees of the HSE, were selected to conduct the inquiries.

It noted that the HSE director general outlined that the former employees had never held management responsibi­lity for service delivery in the south east. However the PAC stated yesterday: ‘The Committee, again while not impugning the integrity of those former employees, is concerned however that such individual­s can be involved in investigat­ing matters that may also involve examining systemic failures or failures on the part of staff who work in the health sector. The HSE needs to ensure any perceived conflict of interest is addressed prior to any contracts being awarded.’

Mr McGuiness said he has been told gardaí have decided there will not be prosecutio­ns on the same case over the abuse allegation­s. This is because many of the alleged victims are unable to fully participat­e in full interviews, he said.

‘Leaving itself open to legal action’

Newspapers in English

Newspapers from Ireland