KEY POINTS:
Today's report is the latest development in a long running saga that has plagued the Hawkes Bay District Health Board.
An inquiry into conflicts of interest was launched in July last year because of a reported $50 million contract to board member Peter Hausman's company Wellcare.
Mr Hausman declared his interests and said he would not be involved in operational matters regarding the contract process.
But a whistleblower intercepted an email from Mr Hausman to health board management that suggested Mr Hausman knew the terms of reference being drawn up between the board and the company.
The woman alerted management to the email and the $50m contract was dropped.
She was later told her position at the DHB was being merged with another and was invited to apply for the position.
The woman took a grievance claim against the board and was awarded a cash pay-out.
The terms of reference of the inquiry include looking into any past and current conflicts of interest held by Mr Hausman in his role as a member of the health board, and the management of those conflicts by him and the board.
The inquiry can also look into "any other matter arising through the course of this investigation that ought to be considered". That could include the treatment of the whistleblower who later lost her job.
The relationship between the board and the Mr Hausman reached breaking point in February before Health Minister David Cunliffe sacked the board, many of whom were voted back into office by the Hawkes Bay electorate as recently as October, last year.
The sacking has been opposed by five local councils and territorial authorities who are set to challenge the decision on legal grounds.
Meanwhile the report, part of which was revealed in Parliament by National health spokesman Tony Ryall, has been the subject of a High Court injunction, preventing the media from publishing its content.
However the report's findings are unlikely to put an end the controversy. Two former board members asked police to investigate Mr Hausman's conduct surrounding the $50m contract on Saturday.
- NZ HERALD STAFF
