In a statement further criticising Mr Ryall's possible removal of Otago District Health Board chairman Richard Thomson over the $16.9 million board fraud, Mr Hodgson said Mr Ryall, now he had expressed serious concern about the adequacy of the audit and risk and fraud awareness systems of the board between 2001 and 2006, had a new conundrum.
"He must sack the chairs of all DHBs which have systems no better than Otago's, or he must demonstrate that Otago's systems were markedly worse than other boards."
Mr Hodgson, who was health minister at the time the fraud was discovered in 2006, said he believed Mr Ryall would find Otago's systems were as good as or better than many.
The unique feature of the case was not Otago's systems but former board employee Michael Swann, one of two men convicted of the fraud, he said.
Given that district health boards nationally had chosen board chief executive Brian Rousseau to be the lead chief executive in a Ministry of Health project on fraud awareness measures, it could be assumed Otago was seen as a leader in this area, "not a laggard", Mr Hodgson said.
Mr Ryall has asked the board for its views on its plans to remove Mr Thomson as chairman, an issue the board is expected to discuss in closed session at its first meeting for the year tomorrow.
Members, including Mr Thomson, have until 5pm on Monday to respond and Mr Ryall is expected to make his final decision once he had considered the points raised.
Mr Ryall's initial letter to the board said he was not considering removing Mr Thomson as a member of the board (Mr Thomson is an elected member) but also states "nothing in this letter limits or restricts any further powers I have in respect of Otago DHB".
