ODHB hit with $1.6m fraud costs

Robert Mackway-Jones
Robert Mackway-Jones
The total paid by the Otago District Health Board in legal expenses and other fees related to the 2008 $16.9 million fraud case is $1,631,891.

This raises the total fraud-related costs which can be determined, including the initial $16,902,145, to $18,534,036.

While the board received $300,000 this financial year from a settlement involving Robin Sew Hoy, any possible amounts awarded through Proceeds of Crime Act proceedings will not come to the board.

Board chief financial officer Robert Mackway-Jones said any such funds would go directly to the Crown.

The board has not determined the amount of time spent by staff on fraud-related matters, but has previously pointed out that this would boost costs considerably.

Sew Hoy was sentenced to 10 months' home detention for his part in the fraud and paid the board $325,000 reparation.

Former board employee Michael Swann is serving a nine-and-a-half-year prison term for the fraud and his friend and business partner, Kerry Harford, was sentenced to four years and three months' jail for his involvement in the crime.

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