❓ An MLA is seeking information about an independent inquiry into corruption and bribery within the North Metropolitan Health Service following a CCC report. The Minister outlines the scope of the review being undertaken by the Public Sector Commissioner with assistance from KPMG, but a completion date is not yet determined.
AnsweredQoN 4318Legislative Assembly
Asked
30 October 2018
Member
Portfolio
Deputy Premier; Minister for Health; Mental Health
QuestionView source ↗
I refer to the Corruption and Crime Commission's report titled 'Report into bribery and corruption in maintenance and service contracts within North Metropolitan Health Service', dated 16 August 2018, and I ask: (a) is an independent inquiry being conducted to address the findings and recommendations of the report; (b) who is conducting this inquiry and when were they appointed; (c) what are the terms of reference for this inquiry; (d) when will the results of this independent inquiry be published; and (e) will the results of this inquiry be tabled in Parliament: (i) if yes to (e), when will the results be tabled?
AnswerView source ↗
Answered
13 February 2019
Response time
13 days
I am advised that:
(a)-(b) An independent review is being undertaken by the Public Sector Commissioner who have engaged the services of KPMG to assist with the review. Advice of this review was provided on 26 September 2018.
(c) The Terms of Reference determined by the Public Sector Commissioner for the review provide that the purpose of the review is to:
Identify possible failure/s of governance and administrative systems within the North Metropolitan Health Service (NMHS), and, where relevant, within the Department of Health, that contributed to the events and issues highlighted in the Corruption and Crime Commission (CCC) report titled “Report into bribery and corruption in maintenance contracts within North Metropolitan Health Service” (the CCC Report) which was published on 16 August 2018.
Specifically, the Review should, in the context of the contents of the CCC Report, consider the adequacy, or otherwise, of:
1. Relevant policies, procedures and management practices around procurement and contract management issues identified in the CCC Report in the period 24 October 2014 to 23 May 2016, with specific attention to the granting and management of maintenance and service contracts within NMHS.
2. Relevant policies, procedures and management practices around risk management arising from the issues identified in the CCC Report, including the identification and management of risks around procurement and contract management; conflicts of interest; gifts, benefits and hospitality; and misconduct.
3. Governance and oversight mechanisms in place to ensure that executive level leadership, particularly the Chief Executive Officer, and where relevant the Board of the NMHS, and the Director General of the Department of Health, were fully briefed by relevant NMHS and/or Department of Health staff in a timely manner on the concerns and issues ultimately highlighted in the CCC Report. This should include, but is not limited to, briefings on the outcome of the Department of Health internal investigation/s undertaken following the CCC referral on 24 October 2014 of the original allegations back to the Department. [Note that in March 2016 the Department of Health referred the matters back to the CCC seeking their involvement and in May 2016 the CCC commenced its own investigation and served the Department of Health with a Notice pursuant to section 42 of the Corruption, Crime and Misconduct Act 2003.]
4. Information provided to support decisions made by the Chief Executive Officer and where relevant the Board of the NMHS and/or the Director General of the Department of Health relating to:
a) The extension of the employment contract of Mr John Fullerton (former Executive Director of Facilities Management at NMHS) in 2015;
5. Responses of the NMHS and the Department of Health, particularly changes to relevant policies, procedure and management practices, following previous reports relating to Health Service Providers and the Department of Health which highlighted inadequacies in governance around fraud prevention and detection (e.g. CCC Report titled “Report on Fraud and Corruption in Procurement in WA Health 2014”; and Department of Health Internal Report on Procurement in NMHS prepared in April 2015 following the CCC referral on 24 October 2014).
6. Changes to relevant policies, procedures and management practices by the Department of Health and the NMHS in response to the concerns and issues identified in the internal investigation/s undertaken following the CCC referral of these matters back to the Department on 24 October 2014. This should include changes since the enactment of the Health Services Act 2016 on 1 July 2016 with the establishment of Health Service Provider Boards, and any improvements enacted and/or still required following the most recent CCC Report tabled in August 2018.
(d) A completion date for the review has not been determined and is subject to the extent of the work required to address the terms of reference. The review is being undertaken in accordance 24B(1) of the Public Sector Management Act 1994.
In accordance with 24B(2) of the Public Sector Management Act 1994 the Public Sector Commissioner will provide the Deputy Premier with a written report on the conduct and findings of the review. Subject to (e) the report will be tabled in Parliament.
(e) Subject to advice to ensure no detriment to any other relevant ongoing, or future proceeding.
(i) Subject to (e).
(a)-(b) An independent review is being undertaken by the Public Sector Commissioner who have engaged the services of KPMG to assist with the review. Advice of this review was provided on 26 September 2018.
(c) The Terms of Reference determined by the Public Sector Commissioner for the review provide that the purpose of the review is to:
Identify possible failure/s of governance and administrative systems within the North Metropolitan Health Service (NMHS), and, where relevant, within the Department of Health, that contributed to the events and issues highlighted in the Corruption and Crime Commission (CCC) report titled “Report into bribery and corruption in maintenance contracts within North Metropolitan Health Service” (the CCC Report) which was published on 16 August 2018.
Specifically, the Review should, in the context of the contents of the CCC Report, consider the adequacy, or otherwise, of:
1. Relevant policies, procedures and management practices around procurement and contract management issues identified in the CCC Report in the period 24 October 2014 to 23 May 2016, with specific attention to the granting and management of maintenance and service contracts within NMHS.
2. Relevant policies, procedures and management practices around risk management arising from the issues identified in the CCC Report, including the identification and management of risks around procurement and contract management; conflicts of interest; gifts, benefits and hospitality; and misconduct.
3. Governance and oversight mechanisms in place to ensure that executive level leadership, particularly the Chief Executive Officer, and where relevant the Board of the NMHS, and the Director General of the Department of Health, were fully briefed by relevant NMHS and/or Department of Health staff in a timely manner on the concerns and issues ultimately highlighted in the CCC Report. This should include, but is not limited to, briefings on the outcome of the Department of Health internal investigation/s undertaken following the CCC referral on 24 October 2014 of the original allegations back to the Department. [Note that in March 2016 the Department of Health referred the matters back to the CCC seeking their involvement and in May 2016 the CCC commenced its own investigation and served the Department of Health with a Notice pursuant to section 42 of the Corruption, Crime and Misconduct Act 2003.]
4. Information provided to support decisions made by the Chief Executive Officer and where relevant the Board of the NMHS and/or the Director General of the Department of Health relating to:
a) The extension of the employment contract of Mr John Fullerton (former Executive Director of Facilities Management at NMHS) in 2015;
5. Responses of the NMHS and the Department of Health, particularly changes to relevant policies, procedure and management practices, following previous reports relating to Health Service Providers and the Department of Health which highlighted inadequacies in governance around fraud prevention and detection (e.g. CCC Report titled “Report on Fraud and Corruption in Procurement in WA Health 2014”; and Department of Health Internal Report on Procurement in NMHS prepared in April 2015 following the CCC referral on 24 October 2014).
6. Changes to relevant policies, procedures and management practices by the Department of Health and the NMHS in response to the concerns and issues identified in the internal investigation/s undertaken following the CCC referral of these matters back to the Department on 24 October 2014. This should include changes since the enactment of the Health Services Act 2016 on 1 July 2016 with the establishment of Health Service Provider Boards, and any improvements enacted and/or still required following the most recent CCC Report tabled in August 2018.
(d) A completion date for the review has not been determined and is subject to the extent of the work required to address the terms of reference. The review is being undertaken in accordance 24B(1) of the Public Sector Management Act 1994.
In accordance with 24B(2) of the Public Sector Management Act 1994 the Public Sector Commissioner will provide the Deputy Premier with a written report on the conduct and findings of the review. Subject to (e) the report will be tabled in Parliament.
(e) Subject to advice to ensure no detriment to any other relevant ongoing, or future proceeding.
(i) Subject to (e).
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