Richard Thomson
Health Minister Tony Ryall has sacked Otago District
Health Board chairman Richard Thomson.
Mr Ryall said he was holding Mr Thomson accountable for the
$17 million fraud which took place at the DHB over six years.
Current board member Errol Millar will take up the
chairmanship and as an elected member Mr Thomson will remain
on the board.
"During Mr Thomson's chairmanship, the largest fraud in New
Zealand state services history was taking place at Otago
DHB," Mr Ryall said.
"This morning I telephoned Mr Thomson to tell him my
decision." Mr Ryall said he had to have confidence that board
would operate both effectively and efficiently.
Mr Millar was appointed to the DHB in 2007 and has previously
served on the Southland DHB.
"The close working relationship between Otago and Southland
DHBs will be further strengthened by Mr Millar's experience
on both boards," Mr Ryall said.
The DHB's former chief information officer Michael Swann and
his friend and business associate Kerry Harford were found
guilty in December last year of defrauding the board $16.9
million.
Both are awaiting sentencing in the High Court next month.
The board also paid $1.3 million in legal fees and other
expenses relating to the case -- pushing the total cost up to
$18.2 million.
The $1.3m comprised $890,000 in legal costs and $420,000 in
other costs such as the detection, storage, security and
valuation of the guilty pair's assets.
The figure included the cost of returning a yacht bought by
Swann with his ill-gotten gains from Fiji to New Zealand.
Mr Ryall had asked Mr Thomson to resign over the fiasco -- a
request he refused.
A number of his fellow board members have backed Mr Thomson
saying attempts to remove him were unfair.
Mr Thomson has also gained support from Labour's Dunedin
North MP, Pete Hodgson who accused Mr Ryall of political
interference.
"Sacking the guy who helped catch the crook is nonsensical;
therefore the conclusion must be that Mr Ryall wishes to
instal his own person to the job," Mr Hodgson said recently.
"Most people will immediately see that Mr Ryall is using the
fraud case as a pretext."
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