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COVID-19 delays SA Health corruption reforms sparked by ICAC report

The taskforce responding to the ICAC’s bombshell corruption report into SA Health has been delayed, as the virus crisis also hits other major projects.

SA Health chief executive Dr Chris McGowan sits on the taskforce. Picture: Naomi Jellicoe
SA Health chief executive Dr Chris McGowan sits on the taskforce. Picture: Naomi Jellicoe

The taskforce inquiry responding to allegations of SA Health corruption faces major delays as the coronavirus pandemic causes another agency project to blowout.

The State Government formed the cross-agency team of senior bureaucrats to “critically review” the $6.4 billion agency’s response to a scathing anti-corruption watchdog probe.

Originally due by early next year, the taskforce’s work is now on hold amid ongoing COVID-19 upheavals throughout the health system.

In response to The Advertiser’s inquiries, SA Health said while the panel continues to meet, “high levels” of consultation, and face-to-face interviews with staff, was currently not possible.

Government officials said a new timetable, with later deadlines, was being drawn up as its response remained a “priority”.

While SA Health has been widely credited for overseeing a world-leading COVID-19 fightback, the virus crisis has hit other major projects.

The Advertiser last week revealed the planned new Women’s and Children’s Hospital faces delays while the $20 million Korda Mentha audit is suspended.

In a damning inquiry in December last year, Independent Commissioner Against Corruption Bruce Lander, QC, condemned SA Health’s “inappropriate integrity culture” that was “ripe for exploitation”.

ICAC Commissioner Bruce Lander raised detailed concerns about SA Health. AAP Image/David Mariuz
ICAC Commissioner Bruce Lander raised detailed concerns about SA Health. AAP Image/David Mariuz

The 66-page report found highly-paid specialists falsely claiming against taxpayers or signing off their own timesheets, public funds being held in private bank accounts, undeclared conflicts of interests, poor records and blundering of clinical trials.

Despite the concerns about corruption, misconduct or maladministration – the irregular and unauthorised use of public money or substantial mismanagement – the government rejected an independent inquiry or royal commission.

Minister’s instead announced a public sector panel headed by SA’s top bureaucrat, Department of Premier and Cabinet chief executive Jim McDowell.

Operating at “arm’s length”, the taskforce also includes SA Health chief executive Dr Chris McGowan and Lesley Dwyer, the Central Adelaide Local Health Network boss, who oversees the Royal Adelaide Hospital.

Treasury boss David Reynolds and the Public Sector Employment Commissioner Erma Ranieri are the other members.

Stephen Wade's trainwreck interview on FIVEaa

In a letter to Premier Steven Marshall, dated February 3 and published on a government website, Mr McDowell said the taskforce would “independently and critically review” SA Health’s four-stage battleplan.

The plan involves three areas of reform including;

INDUSTRIAL relations and reviewing arrangements with medical officers such as their rights of private practice against industry best practice.

CULTURE changes such as an overhaul of misconduct investigations, creating new mental health plans and updating training. Chief public health officer, Professor Nicola Spurrier – widely praised for spearheading SA’s coronavirus fight – was overseeing this with Ms Ranieri.

AGENCY work policies, procedures and systems.

Having first met two days before Christmas, the panel first considered “some quick wins that can be implemented within a short time frame”.

The taskforce reviewed responses to Auditor-General and SA Health’s Internal Audit unit reports and recommendations later covered by the ICAC report.

Any reforms with staff and unions would be consulted before changes were funded and implemented before a final report within 12 months.

A beaming Health Minister Stephen Wade at the RAH flanked by nine of the 10 Local Health Network chief executives responding to the ICAC report into SA Health. Dr McGowan was absent as he was being interviewed by an independent investigator. Picture: Brad Crouch
A beaming Health Minister Stephen Wade at the RAH flanked by nine of the 10 Local Health Network chief executives responding to the ICAC report into SA Health. Dr McGowan was absent as he was being interviewed by an independent investigator. Picture: Brad Crouch

The Advertiser revealed how the ICAC report came more than two years after the government rejected Mr Lander’s $2 million request to “evaluate” SA Health.

Opposition health spokesman Chris Picton said if the funding request had been granted “the inquiry and implementation would have been wrapped up before any case of coronavirus”.

In a statement, an SA Health spokeswoman said: “The taskforce has continued to meet to oversee the response to the (ICAC) report, most recently meeting in early May.

“As expected, the full focus of the health system in recent months has been on the response to the pandemic to ensure the health and wellbeing of all South Australians.

“Due to the high levels of face-to-face consultation required … a number of activities have been temporarily paused, however administrative background work is continuing.

“The response remains a priority and a revised timeline for the plan’s delivery is expected to be determined later this month.”

Mr Lander has raised concerns that COVID-19 “increases the risk of corruption, misconduct and maladministration … in public administration”.

Original URL: https://www.adelaidenow.com.au/news/south-australia/covid19-delays-sa-health-corruption-reforms-sparked-by-icac-report/news-story/b35bbcc63b96dc352eebb47455aac216