Some statements by Otago District Health Board chairman Richard Thomson in his briefing paper to Health Minister Tony Ryall on the $16.9 million fraud have been rejected by some of those named.
Former board financial officer Ewan Soper said it was "absolutely incorrect" that he had told auditor Bruce Robertson, when he sought a full audit of information technology, that he [Mr Soper] was keeping a close eye on Michael Swann and to "stay out of it".
Mr Soper said it had never been possible to direct Audit NZ, or any auditor, in that regard.
"My evidence in the trial that was confirmed by a witness (the Audit NZ staff member) was that we asked for an Audit NZ IT specialist from Wellington to carry out a review in addition to the normal audit.
Nothing of any concern was uncovered through that review."Mr Robertson could not be contacted for comment.
Mr Soper also did not agree he had been told by former Healthcare Otago chairman Ross Black to inform the auditors about the concerns raised in a letter containing allegations by two prominent businessmen about Swann's past.
He and Mr Black had had several discussions over four or five years, but he was not specifically told to tell the auditors.
He had told them, however, and that was why he had asked for the specialist IT audit.
A claim the structure of the fraud was "largely created in 2000 and rolled into subsequent years as a budgeted item" also drew comment from Mr Soper.
At that time, Healthcare Otago and the Health Funding Authority were being amalgamated into the district health board structure and Swann was asked to amalgamate the IT for the two organisations.
Considerable change was occurring and staff were being assigned to new roles and responsibilities.
Mr Soper said the letter from the two prominent businessmen was not handed to him, but the allegations were discussed with him and a copy of the notes from an investigative hearing, regarding the company to which the allegations related, was given to him.
"I discussed this information with Swann so that he was aware that we were aware of these allegations.
This background knowledge did assist with shaping some of the controls introduced across the whole organisation.
"Mr Soper did not recall what was described by Mr Thomson as an "acrimonious debate" at the first meeting of the new district health board in 2002, saying he doubted the minutes reflected the comments as recorded by Mr Thomson.
He also took issue with the suggestion he was the only person present with reason to be suspicious of Swann, as then chief executive Professor Bill Adam, who also knew of the allegations about Swann's past, would also have been present.
(Mr Thomson also advised the Otago Daily Times that was the case, after the briefing paper was released.)
Mr Soper's concerns that the IT expenditure figures for 2000-01 and 2001-02 as presented in the paper, and an accompanying graph, could be incorrect were being checked by board management yesterday.
Mr Black said yesterday he did not receive legal advice over the letter containing allegations about Swann's past, as stated in Mr Thomson's briefing paper.
He had put the matter in the hands of acting chief executive Bruce Gollop, who took the legal advice suggesting Swann's employment status could not be challenged on the basis of the allegations made.
Mr Black said there was "quite a bit of intrigue" about the letter's no longer being available.
Mr Gollop had retained the letter in his private file, which was locked in his desk, and that was handed over to Prof Adam when he was appointed.
Mr Black said there was quite a list of management actions recommended and implemented by Mr Gollop and himself as a result of the receipt of the warning letter.
Mr Gollop said last night he was acting chief executive from April to October 1998 and agreed he had sought legal advice on the letter, which suggested the board "couldn't do too much about that because it was a matter of hearsay evidence".
It was very clear whoever wrote the letter wanted it to be confidential, which "causes a problem in its own right".
However, he said it was enough to alert him to make sure Swann did not have any significant financial responsibility.
He agreed he had kept the letter in a locked desk and that he had verbally briefed incoming chief executive Prof Adam.
He had no idea what happened to the letter after that.
Mr Gollop also said the mention of him as part of the PricewaterhouseCoopers (PwC) review of the financial and operational status of the board was "a bit cute" and drawing "a bit of a long bow".
He had been employed by the Ministry of Health at the time and it was conducting an audit of the acute demand at Dunedin Hospital's emergency department.
The PwC review of finances was commissioned by the ministry at the same time, so they were conducted simultaneously.
His involvement was in looking at clinical matters, not financial, Mr Gollop said.
More information sought
•Otago District Health Board chairman Richard Thomson, who is under threat of dismissal, is asking Health Minister Tony Ryall to provide him with further information.
On Thursday, Mr Ryall sent letters to Mr Thomson and the rest of the board advising them he was considering removing Mr Thomson from the chairmanship over the $16.9 million fraud and seeking their views on the matter.
All have until 5pm on Thursday, the day of the board's first meeting for the year, to respond.
Mr Thomson said he had not begun to draft his response as he had gone back to Mr Ryall, asking that he provide him with the information upon which he based his decision on the possible removal.
Mr Thomson said he was still receiving much support from members of the public, which was "lovely".
