Otago DHB chairman waits to hear fate

Tony Ryall. Photo / Mark Mitchell

The head of the Otago District Health Board (ODHB) will have to wait at least a week to find out if Health Minister Tony Ryall takes up his challenge to sack him.

On Wednesday Richard Thomson refused Health Minister Tony Ryall's request to resign from his position after a fraud scandal that saw nearly $17 million stolen from the hospital.

He told Mr Ryall he should have the courage of his convictions and sack him and provide the public with reasons for doing so.

In a briefing a week ago, Mr Thomson informed the minister on the fraud of the DHB by its former chief information officer Michael Swann and his friend and business associate Kerry Harford.

Yesterday, Mr Ryall wrote to board members advising because of the $16.9 million fraud he had lost confidence in their chairman and was considering removing Mr Thomson from the role, the Otago Daily Times reported.

"Given the magnitude of the offending, and the loss of such a considerable sum of taxpayers' dollars, my confidence in the governance of the DHB and its leadership has been affected."

The board had until next Thursday to put their views about the sacking to the minister in writing.

His final decision would be made once he had considered the points raised.

Mr Ryall said he was not considering removing Mr Thomson as a board member.

Meanwhile the ODHB has rallied in support of its chairman, with many members saying it would be a huge loss for Otago if he was sacked.

Board members spoken to by the Otago Daily Times yesterday expressed their dismay at the way the situation was unfolding, saying it would be unfair if Mr Thomson was sacked.

Many spoke of his hard work, integrity and experience in the health sector and had "total" and "absolute" confidence in his leadership.

Board member Malcolm Macpherson said the only justification he could see for sacking Mr Thomson was the Westminster convention - "if something happens on your watch, you are accountable" - but nobody anywhere in New Zealand was held to those standards, even ministers.

"In my experience in local government and the health sector, which goes back more than 20 years, Richard Thomson has been the best chair I have worked with."

Dr Branko Sijnja said the fraud was in place "well before Richard was even in the picture".

Mr Thomson has also gained support from Labour's Dunedin North MP, Pete Hodgson who accused Mr Ryall of political interference.

"Sacking the guy who helped catch the crook is nonsensical; therefore the conclusion must be that Mr Ryall wishes to install his own person to the job.

"Most people will immediately see that Mr Ryall is using the fraud case as a pretext."

Swann and Harford were found guilty last month and are awaiting sentencing.

- NZPA