The Crown has told a Dunedin High Court jury two men pocketed almost $17 million from the Otago District Health Board over six years by doing no more than writing 198 invoices for computer services they never provided.
Michael Swann (46), who headed the hospital IT department at the time, and business associate Kerry Harford (48), both deny three charges each of dishonestly and fraudulently using 198 invoices from a Harford-owned company, Sonnford Solutions to obtain just over $16.9 million from the board between 2000 and 2006.
Prosecutor Robin Bates said in his opening of the Crown case today that any maintenance work on the three hospital servers was "minimal" and carried out by paid employees of the hospital, including Swann himself.
And when outside computer engineers checked the servers in late 2006 and early 2007, after they crashed, they found the servers were still running on the original software and programmes installed by IBM.
The servers had been kept running by patching up and cannibalising parts from other computers.
But Swann and Harford billed the board for maintenance and programme upgrades and were paid $16.9 million of which Harford retained 10 percent and immediately paid the other 90 percent to Swann-related companies or entities.
Swann received about $15 million, much of which he spent on cars, boats and property - and all this during a time when the health board was trying to keep spending down because of its financial position, Mr Bates said.
