KordaMentha paid $100,000 to investigate SA Health’s troubled Central Adelaide Local Health Network
KORDAMENTHA are being paid $100,000 to investigate explosive allegations by whistleblowers about activities in SA Health’s troubled Central Adelaide Local Health Network.
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CONSULTANTS KordaMentha are being paid $100,000 by the Department of Health and Wellbeing to investigate explosive allegations by whistleblowers about activities in SA Health’s Central Adelaide Local Health Network (CALHN).
The allegations include the deliberate “deskilling” of senior clinicians and mangement as well as the purchasing decisions of medical supplies by other clinicians.
The investigation is separate to the $880,000 contract KordaMentha has landed to find ways to stem blowouts in CALHN’s $1.39 billion annual budget.
The whistleblower investigation contract includes payments of up to $6380 per day for the firm’s Melbourne-based Stephen Millington to lead the project.
The contract paperwork describes him as having expertise in “forensic accounting, fraud and corruption, money laundering and regulator investigations”.
He leads a three-man team which includes David Lehmann, described as an expert in “fraud, corruption, and other employee misconduct”, who is being paid $5940 a day.
The third team member, Taylor Holub – also an expert in “fraud and corruption” – is being paid $4620 a day.
The contract is to “conduct a forensic investigation to the allegations levied at CALHN and the Department of Health and Wellbeing and to submit evidence-based recommendations on the investigation outcome.”
This includes interviewing key staff and stakeholders to substantiate or reject allegations, identifying documents and collecting records including “telephone records, diaries and electronic images of computers, tablets and mobile phones.”
“Analysis of the accounting records will also be undertaken to establish the volume of transactions with the suppliers that have been named by the whistleblower,” it states.
CALHN includes the Royal Adelaide Hospital and the Queen Elizabeth Hospital as well as statewide agencies including Breastscreen SA, Prison Health Services, SA Dental Services, SA Pathology, SA Imaging, SA Pharmacy and SA Biomedical Engineering.
It is understood the report has not been finalised but is expected to be shortly.
SA Health released a statement to The Advertiser saying: “All claims of impropriety are taken extremely seriously, investigated and reported to the appropriate authorities, including the Independent Commissioner Against Corruption.”
Opposition health spokesman Chris Picton said the latest contract meant at least a million dollars of the health budget is going to KordaMentha.
“Rob Lucas wants KordaMentha to take over management of our public hospitals. That’s a scary prospect that will mean budget cuts before patient care,” he said.
“The Marshall Government is already sitting on the first report from KordaMentha that is expected to recommend sweeping cuts to patient services.
“KordaMentha are corporate liquidators not health experts. The Minister hasn’t been able to point to any experience KordaMentha have with public hospitals, yet they are being picked for contract after contract.
“The Opposition has referred the first KordaMentha contract to the Auditor-General as it was awarded without any tender against State Procurement Guidelines.
“The Minister should explain if allegations have been reported to the police for their investigation.”
