ODHB to consider fraud policy

Minor changes made to the Otago District Health Board's fraud policy since its introduction almost a year ago will be considered by the board today.

The policy, approved last year, applies to both the Otago and the Southland boards.

It says there is zero tolerance to fraud and covers staff, board members, volunteers and contractors.

It replaced two policies and was designed to establish clearly how suspected fraud would be reported and investigated.

Among the options available to staff is a fraud telephone hot-line run by the Ministry of Health.

Former board employee Michael Swann and his friend and business associate Kerry Harford were found guilty in the High Court at Dunedin last year of defrauding the board of $16.9 million over six years.

They are both in custody, and are expected to be sentenced next week.

The amended policy, which is being presented to the board by the audit, finance and risk management committee, specifies what the regional chief financial officer must record in the central register of all fraud incidents and reports.

They will cover the parties involved, the nature of the event, the amounts involved and/or recovered, the details of the investigation, the outcome or recommended action, the identification of any issues or weaknesses in the system and any improvements made.

The existing policy states the chief financial officer shall maintain and update the register without listing the type of information to be recorded.

The updated section relating to handling of media inquiries about fraud allows for the chairman to handle " certain inquiries if appropriate".

The existing policy says the chief executive will deal with all media inquiries on fraud.

The board will also be asked to approve updated delegation of authority, procurement and purchasing and tendering policies and terms of reference for its audit, finance and risk management committee.

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