ICAC running multiple criminal investigations into SA Health’s potential corruption, maladministration
Eight months after outgoing ICAC head Bruce Lander raised likely corruption and maladministration within SA Health, it remains a risk, he says, revealing multiple criminal investigations are underway.
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Independent Commissioner Against Corruption Bruce Lander is investigating multiple cases of potential criminal activity within SA Health and warns it remains “rife for corruption.”
Eight months after his report Troubling Ambiguity outlined chronic problems of corruption and maladministration in the huge department, after the state government had refused him $2 million for a full evaluation, he says the problems he identified remain entrenched and there are “live issues” that need addressing.
The allegations in his report included 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.
The state government established a taskforce in response to his report but Mr Lander told a parliamentary committee: “There is no evidence yet the taskforce has been able to turn around the problems in Health.”
Asked what the new ICAC Ann Vanstone needed to address in SA Health when she starts next month, the outgoing Commissioner answered: “Corruption, misconduct and maladministration.”
Mr Lander also noted that conflicts of interest seen in SA Health are entrenched across the wider bureaucracy because public servants don’t seem to understand it is the potential to prefer private interests over public – which becomes abuse when it actually occurs.
“There is nothing wrong with people having a conflict of interest – it happens all the time – what’s wrong is if it is not declared and managed,” he said.
One agency within SA Health, the Southern Adelaide Local Health Network, has made registering potential conflicts of interest a priority and since the ICAC report has logged “2000 or 3000” cases, the committee was told.
Mr Lander told the Health Services Committee problems in SA Health had built up over many years and been “allowed to fester.”
He said there was still “significant opportunity for corruption” as well as maladministration and while he could not give an estimate, said there were significant savings if these issues were addressed.
Poor record keeping, which had hindered investigations – including into the Oakden scandal – remains “a significant problem in corruption and maladministration.”
“It has been a significant problem in Health since I’ve been ICAC,” Mr Lander said. “It has to improve or the agency will always be at risk.”
The committee was told there had been problems with special-purpose funds supposed to be used for public health that had been “transferred out of Health altogether” into entities independent of SA Health by clinicians seeking to control the money.
“There is evidence sometimes the funds have been used inappropriately,” Mr Lander said.
“It is rife for corruption because control is out of the hands of Health, the benefit of the funds may never be used for public health.”
Mr Lander remained disappointed the government refused to fund his planned evaluation, saying: “I think the government was wrong not to provide me with funds to carry out an evaluation — I think Health would be a better agency now if the evaluation had been carried out.”