Health Minister Tony Ryall confirmed in Parliament today he is considering sacking Otago District Health Board chairman Richard Thompson.
"As chairman, Mr Thompson is accountable for leading a board that operates both effectively and efficiently," Mr Ryall said, when he was questioned by Labour MP Pete Hodgson.
"He has been chairman of the board since late 2001, during which time the largest fraud in the history of the New Zealand state services was taking place at the Otago District Health Board.
"This fraud totalled nearly $17 million of taxpayers' money."
Mr Hodgson asked why Mr Ryall was considering sacking Mr Thompson when the people of Otago had voted every member of the DHB back into their jobs.
"I am not considering removing Mr Thompson from the board as an elected member," Mr Ryall replied.
"It is his position as chair that I'm considering. This is a matter of accountability."
Earlier during question time Labour leader Phil Goff drew Prime Minister John Key into the matter, asking him why he had confidence in a minister whose behaviour had been described in the Otago Daily Times as "blatantly partisan scapegoating" and as having "compromised any semblance of due process".
Mr Key said he had "great confidence" in Mr Ryall, who was prepared to look for accountability when there had been a $17m fraud.
National MPs joined in, asking Mr Ryall what sort of services could have been provided for $17m.
Mr Ryall said it would have paid for more than 1100 knee replacements, or 1200 hip replacements, or more than 8000 cataract operations, or nearly 700 coronary bypass operations.
In December last year the DHB's chief information officer Michael Swann and his business associate Kerry Harford were found guilty of the fraud and are awaiting sentencing.
Mr Thompson last month refused Mr Ryall's request to resign.
