Former Director of Public Prosecutions joins call for formal corruption inquiry into SA Health

One of SA’s former top prosecutors says the lack of a formal probe into claims of corruption at SA Health is “inexplicable”.

• SA Health corruption fears revealed

A lack of formal inquiry into claims of corruption within SA Health, given it involves significant amounts of taxpayers’ money, is “inexplicable”, the state’s former top prosecutor has warned.

Former Director of Public Prosecutions Stephen Pallaras QC has added his voice to calls for an inquiry into claims of health mismanagement and conflicts of interest.

The anti-corruption watchdog has revealed serious concerns with SA Health and Ministers’ rejection of more resources to investigate it.

The Advertiser last month revealed more than 1000 allegations of corruption had been levelled against the agency as the $6 billion system faces hospital overcrowding, record levels of ambulance ramping and industrial unrest.

Former Director of Public Prosecutions Stephen Pallaras QC.

This newspaper also revealed the government had rebuffed an ICAC request for almost $2 million in 2018 to investigate parts of health. Mr Pallaras, who has also been involved in anti-corruption inquiries, said yesterday the “inactivity” in response was “inexplicable”.

“I would have thought it was in the government’s interests to see whether the alarms are legitimate and if so do something about it,” he said. “And if not, then say there is nothing in it. I just don’t understand why it is not doing anything about this?”

His public intervention came after it emerged the boss of South Australia’s largest, and most expensive government department, will be subject of an independent inquiry over his business dealings.

SA Health chief executive Chris McGowan is accused of a conflict of interest and allegations he “predated” documents for the country’s corporate watchdog. Parliament has heard he was still registered as director of Silver Chain Corporate Services, while its parent company had a $13 million government contract. SA Health has blamed an “administrative error”.

Dr McGowan was last night refusing to stand aside despite referring himself to the Public Sector Employment Commissioner, Erma Ranieri.

Amid concerns about her independence, Ms Ranieri yesterday announced an external investigator: “It is important we uphold the Code of Ethics, as it is the foundation of our public sector’s conduct, culture and professional integrity.”

Labor spokesman Chris Picton called on Dr McGowan to stand aside.

Health Minister Stephen Wade this evening said he was awaiting an ICAC report but added: “We don’t need a centralised response. We are driving real change on the ground.”

SA Health said it was awaiting the review’s outcome.

Originally published as Former Director of Public Prosecutions joins call for formal corruption inquiry into SA Health