Health boss inquiry cost thousands

The investigation into disgraced Waikato health boss Nigel Murray cost the district health board more than $150,000.

Furthermore, Murray spent half of the 2016/17 financial year travelling overseas. That left just 182 days, including days off, on the job in New Zealand.

The travel figures were obtained from a mass publication by the DHB of all of Murray’s receipts.

However, it has also been revealed in information released under the Official Information Act by the DHB that more than $55,000 ($54,995.80, excluding GST) was paid to an Auckland barrister to investigate Murray’s actions and expenses.

The total cost of the investigation was

$76,860 externally and an estimated

$68,500 internally, excluding GST, the figures show.

Some $33,585, again excluding GST, was spent on external legal advice, according to information released to the Waikato Times on Saturday.

The investigation tied up nine internal staff who spent an estimated

950-plus hours collating and compiling information.

Some $10,889.66 alone was spent on public relations advice – again, excluding GST.

From July 1, 2017, to October 5, 2017, Murray was technically on leave. During that time, according to information released on Saturday, he was paid

$148,521 in salary and annual leave. Murray was appointed by the Waikato DHB in July 2014 but resigned on October 5 this year, partway through an investigation into allegations he misspent health dollars during his numerous trips, both abroad and within New Zealand.

During his three-year tenure, Murray chalked up $218,166 in expenses, including $71,811 of unauthorised spending.

Murray’s resignation was accepted by the DHB on the basis he pays back funds owed.

As chief executive, Murray took 16 overseas trips – to Australia, Canada and the US.

During one trip to Palo Alto in September 2016, Murray stayed two nights at Nobu Hotel Epiphany, in the heart of California’s Silicon Valley.

Murray said the purpose of his trip was to visit United States-based health company HealthTap.

Waikato DHB chairman Bob Simcock has defended the health board’s handling of its investigation into Murray, despite the Health Ministry’s announcement of a fresh probe.

Health Minister David Clark, as one of his first tasks as minister, instructed State Services Commissioner Peter Hughes to investigate the circumstances surrounding allegations of wrongful expenditure by Murray.

Murray’s financial records were filed late for each year he was employed by the DHB.

Simcock said he first learnt of concerns about Murray’s spending on June 7 this year. It took him a further month and 12 days to alert the full board.

In a four-page statement, posted online by Waikato DHB executive Maureen Chrystall, she said the board’s investigation had not uncovered any criminal conduct by Murray.

‘‘However, if evidence emerges that there are issues that should be referred to the police, or which requires some other action, the board will act accordingly, ‘‘ Chrystall said.

In September, Waikato DHB signed off on its 2017/18 budget with a forecasted deficit of $481,000.

The DHB’s original draft budget showed a $39.4 million deficit.