TAIHS agrees to pay settlement in Dr Stephen Hangan defamation case
An NQ Indigenous health service has agreed to settle a defamation claim from their former CEO. DETAILS.
Townsville
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An NQ Indigenous health service has agreed to settle a defamation claim from their former CEO.
In 2023 Dr Stephen Hagan, who was the CEO of the Townsville Aboriginal and Islander Health Service for less than six months, launched legal action against his former employer over claims of damages to his reputation made after a statement was released by the organisation over his termination.
The case went to mediation, with the official determination deemed confidential due to settlement negotiations, but the Bulletin can reveal the matter has settled.
TAIHS claimed that the former CEO, who is a prominent Indigenous advocate and responsible for Coon Cheese changing it’s name to Cheer Cheese, had mismanaged finances, which resulted in him being sacked.
However, in the statement of claim, it was said that any decisions regarding expenditure greater than $5000 were approved by the board of directors.
Documents obtained by the Bulletin that were relied on in court show that the TAIHS Finance, Audit and Risk Committee, which included members of the board, recommended Dr Hagan be terminated due to his lack of ability to “manage financial expenditure”.
According to the court documents, they also raised concerns about the purchase of a property on Ross River Rd for $3.9m without consulting the committee, saying there was a lack of a business case and of due diligence in the purchase.
They said in the letter to the board that “large financial recommendations to the Board” that had been made without consultation of the committee had resulted in TAIHS having a “significant liquidity problem”.
They said he did not understand the difference between the organisation’s cash position and its cash assets.
However, in another letter, former board chairman Michael Illin explains that after seeing a business case from Dr Hagan on the purchase, the board made the decision to purchase the property using “retained earnings”. He explicitly says that operational earnings, which constituted grant money, were not used to purchase the property, which was confirmed by an external audit.
Dr Hagan’s statement of claim makes reference to a notice of a general meeting sent to TAIHS members, which referenced him multiple times.
The notice includes three points: Dr Hagan’s employment was terminated because his decisions put the organisation’s financial viability at risk; he made costly decisions; and that he had damaged TAIHS by putting it in financial risk.
“In publishing the notice, the defendant intended to injure the plaintiff in his reputation and to induce readers to shun or avoid or ridicule or despise the plaintiff,” the claim states.
However, in a statement released to the Townsville Bulletin in December 2021, the former chairman said that “the financial viability and security of TAIHS remains unchanged with no threat to ongoing operations, service provision or staff security”.
Dr Hagan told the Bulletin he was “relieved” that it was over, but he could not comment on the settlement figure.
“After three long years of protracted legal arguments and mediation sessions I am relieved to have come to a financial settlement on my defamation case against the board of directors of the Townsville Aboriginal and Islander Health Service,” he said.
“I can now put this unfortunate controversy behind me as I continue to progress new vocational interests.
“It has been a stressful period for my family.
“However, I wish the membership of this critical First Nations organisation in Townsville all the best in the future.
“There is nothing more important than (the) good health and wellbeing of our mob.”
Dr Hagan’s sacking sparked significant backlash in the community, with multiple elders pushing for the board at the time be sacked.
TAIHS members tried to oust the board on multiple occasions, but were not successful.
TAIHS did not respond to a request for comment.
Originally published as TAIHS agrees to pay settlement in Dr Stephen Hangan defamation case
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