DHB fraudster escapes extra jail

Former Otago District Health Board chief information officer Michael Swann will serve no extra time in jail for accepting over $755,000 in kick backs.

Swann is already serving nine and a half years in prison for defrauding the DHB of more than $17 million over a period of six years.

In December last year, Robin Sew Hoy was given 10 months home detention for essentially bribing Swann to the tune of $755,159.89 to secure computer help desk work for his company at the DHB.

Justice Lester Chisholm, in sentencing Swann today under the Secret Commissions Act, accepted that the sum paled in comparison to the overall offending.

He said it was a difficult sentencing decision to make and he had to decide whether the offences under the Secret Commissions Act were effectively part of the overall offending and therefore reflected in the original sentence of nine and a half years.

He sentenced Swann to 20 months for the bribe, but that would be served at the same time as the original sentence.

He adjourned the issue of reparation until June 30 when it would be clearer how much money would be available from Swann's assets.

Sew Hoy has already paid back his half of the bribe money to the DHB.

Counsel for Swann said the assets available to repay more than $17 million in debts amounted to "no more than $5 million" and was complicated by the share of assets owned by Swann's wife.

- NZPA