Auditors deliver reminder to health board managers

By REBECCA WALSH health reporter

A report to the Auckland District Health Board recommending its members and senior managers register their outside interests is a "timely" reminder says board chairman Wayne Brown.

An internal audit report to be discussed by the board today recommends that the register be updated at every board meeting.

It recommends that the register be "extended to include members of the senior management team".

The report comes after the resignation of chief executive Graeme Edmond and chief financial officer Ian Ward, who were accused of a conflict of interest involving a medical supplies company.

Yesterday Mr Brown said the recommendations were simply a timely reminder.

"This is just a refresher. They already are the rules. This is nothing new. These are the rules from the State Services Commission."

He refused to comment on whether he had known Graeme Edmond was a director of Health Support, a provider of hospital medical and surgical supplies.

"I'm not going to go into that. You are fishing. He's not there any more. We have got no interest."

Health Support has been progressively privatised since it was set up by Auckland's public hospitals in 1992. When the Ebos Group bought the remaining shares last year Mr Edmond continued as a director. Mr Ward would stand in for him when he was unable to attend meetings.

In June the health board's audit committee, which meets in private, excluded Mr Edmond and Mr Ward from talks about the board's main $17 million contract with Health Support, alleging a conflict of interest. The contract has been renewed but will be put out to tender next year.

At the time health sources told the Herald they believed the board used the situation as a pretext to force the two to quit.

Ebos managing director Mark Waller said Health Support did not pay Mr Edmond but gave his director's fees of about $10,000 to the health board. Neither Mr Edmond or Mr Ward could not be reached for comment yesterday.