Yesterday chief executive Carole Heatly said the board had given up hope of settling the multimillion-dollar health funds row.
But this is not the first time the board has said it was moving on from the dispute. Last June, after the Serious Fraud Office said it would take no action, a health board spokesman said the row was ‘‘over'', but Ms Heatly subsequently decided to press on and pursue the matter.
‘‘However, we have been unsuccessful in reaching an agreement.
‘‘We accept it's time to draw a line under this issue, and move on,'' Ms Heatly's statement yesterday said.
South Link Health lawyer Frazer Barton said SLH declined a request to relaunch the negotiations.
The talks were voluntary, and SLH declined because the situation had changed when the board sought an SFO probe. Legal deadlines for civil redress had long since closed.
‘‘It's been a very long-running and complicated dispute. These are important players in the health sector and they have to work together,'' Mr Barton said.
The dispute initially involved $5.3million, but the amount was said to have grown with interest to about $15million. It concerned savings SLH achieved in historic laboratory testing and pharmaceutical contracts with the then funding entities.
Allegations of political interference and bureaucratic inertia erupted in early 2014 after it emerged the health board had legal advice in 2010 the dispute could involve fraud.
Later that year, acting on advice from the Auckland forensic investigation firm Beattie Varley Ltd, the board referred the matter to the SFO. The independent practitioner association has always maintained it had done nothing wrong.
Last December the Otago Daily Times reported the row had cost the cash-strapped board more than $260,000 in external legal advice and accountancy services since 2009.
SLH estimated it had spent about $400,000 (including $190,000 in legal costs).
