A report into the beleaguered Hawke's Bay District Health Board (DHB) says none of the main players have come out of the affair with a clean sheet.
The review into management of conflicts of interest into the DHB says the board - which has since been sacked -had failed even the simplest test of good governance.
The board tore itself apart after allegations that a newly appointed member Peter Hausmann had used his position to gain an advantage for his company in tendering for a $50 million contract that was later cancelled.
Since then a series of accusations have been made alleging cronyism and misconduct between the board members and management.
Health director-general Stephen McKernan said the review he commissioned into the affair showed that if the board had applied common sense the problems would have never been an issue.
"The report shows that in relation to Mr Peter Hausmann, neither the board, the chair, nor Mr Hausmann managed his conflicts well," Mr McKernan said.
It was possible for board members to do business with a board if conflict of interest measures were put in place, in the case of the DHB these were weak.
There was a also a "culture of mistrust and dysfunction" between the board and management that was "a significant road block" to good performance.
The report said Mr Hausmann's failure to tell the board that he had "unusual" involvement in drawing up tender documents before he became a board member was an oversight which he should have fully disclosed.
The report also details a break down in communication between board members and senior management which became a "seriously eroded and dysfunctional" arrangement.
Health Minister David Cunliffe sacked the board last month due to conflicts between board members, a breakdown in relations between management and the board, as well as a deteriorating financial situation.
His actions drew an angry response from some in the community and since then allegations have been thrown around in the courts and Parliament.
