KEY POINTS:
Members of the former Hawkes Bay District Health Board, including Peter Hausmann, have been criticised in a review report on conflicts-of-interest issued this afternoon.
The director-general of health, Stephen McKernan, who commissioned the review, says it found that if the former board and its chairman Kevin Atkinson had applied common sense and good practice, the conflicts at the heart of the review would have been controlled before they became problems.
The review was commissioned last July after concerns were raised about the way conflicts of interest were managed in two commercial initiatives involving the district health board and a board member.
"The report shows that in relation to Mr Peter Hausmann, neither the board, the chair or Mr Hausmann managed his conflicts well," Mr McKernan said.
"Board members can do business with a DHB. What is important is that the appropriate measures are taken to declare adequately and manage the conflicts of interest; that was not done. The Board had very weak systems and processes for determining how conflicts of interest should be managed.
"The review panel found a culture of mistrust and dysfunction between the board and senior management and that this is a significant roadblock to good performance.
"The Review Panel has also recommended a series of measures to bring HBDHB up to a level of governance expected of public bodies. The need for such basic measures speaks volumes."
Health Minister David Cunliffe fired the board last month and replaced it with a commissioner, citing conflicts between board members, an "irrevocable breakdown" in relations between board and management and a deteriorating financial situation.
His actions drew an angry response from many of the board members and sections of the Hawke's Bay community.
