Top health executive’s role dumped
A senior Ministry of Health executive embroiled in an investigation into procurement practices has left after his role was disestablished in a restructure.
Michael Hundleby, a powerful figure in the ministry close to controversial former directorgeneral Chai Chuah, oversaw significant hospital redevelopment projects in his role as critical projects director.
He was placed on ‘‘gardening leave’’, or paid leave, around the start of June last year while an investigation was carried out – a probe the ministry repeatedly refused to acknowledge publicly.
In response to an Official Information Act request by The Press, the ministry broke its silence this week.
Ministry chief legal adviser for corporate services Phil Knipe confirmed Hundleby left the ministry after his role was disestablished and his employment came to an end in early January.
‘‘There has not been any investigation into Mr Hundleby himself but there has been an investigation into procurement activity relating to capital projects,’’ Knipe said.
In 2017, the Otago Daily Times reported Hundleby had drafted in Christchurch project management firm Proj-X Solutions to work on the Dunedin Hospital redevelopment project without going through a tender process.
It is not known if this is included in the scope of the investigation. Proj-X director Bryan Spinks told The Press yesterday neither he nor the company had been approached by the ministry or any other party in relation to an investigation.
Knipe said the investigation was still ongoing, eight months after it is thought to have started, and nothing had been referred to external agencies.
‘‘The investigation had no material impact on the disestablishment of Mr Hundleby’s position which was part of a ministry wide reorganisation at the executive leadership level,’’ Knipe said.
The broad restructure of second-tier roles that took place last year included folding critical projects into the newly created deputy director-general DHB performance, support and infrastructure portfolio. Staff whose jobs were affected were able to apply for the new positions. The ministry would not comment on whether Hundleby did so.
Hundleby said the investigation had not been completed so he could not comment. However, he did say he had no personal relationships with the directors of Proj-X distinct from the professional relationships required by his role.
He also said the Otago Daily
Times report indicated the role the company was asked to carry out. In that story, Hundleby is quoted saying the firm was hired without conducting a tendering process because of ‘‘specific expertise and timing’’.
It is unclear how long he was on leave before his eventual departure in January, however a ministry spokesman confirmed that for the period he was on leave, Hundleby was paid.
The spokesman also said the investigation was expected to be completed in the near future.
As a member of the executive leadership team, Hundleby would have been among the highest paid employees at the ministry.
Its 2016/17 annual plan showed
11 people in the leadership team were collectively paid out
$4.43 million.
State Services Commission figures show the chief executive received compensation of up to
$529,999 during the same time period, leaving the remaining 10 people with an average of $389,900 each. Hundleby started as critical projects director in 2016. The role was originally intended as a twoyear, fixed-term position, but he was placed on a permanent employment contract in September 2017.
Over the years, Hundleby worked closely with Chuah, who announced his resignation as director-general of health in December 2017, halfway through his five-year term.
The pair worked together at the ministry and, prior to that, at the Canterbury and Hutt Valley district health boards.
There have been widely reported rumours of bad blood between both Chuah and Hundleby and the CDHB.