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The Voice

Strachan blasts health authority over breached contracts
published: Thursday | December 9, 2004

THE NORTH East Regional Health Authority has come under criticism from Auditor-General Adrian Strachan for $1.2 million in unauthorised gratuity payments made to three officers who left the authority before their contracts had expired.

According to the Ministry of Health, which is responsible for the health authorities, at least two of the officers had been forced to end their employment early because of personal issues.

One of the officers had to return to his country 'due to a family crisis' and one returned to his country 'due to illness' the ministry said.

In the auditor-general's observations, the authority was advised to effect recovery and to ensure future compliance with agreed contract conditions, which had stipulated that the officers could not receive gratuity payments until after they had completed their contracts satisfactorily.

But the Ministry of Health responded that in the three cases involved the authority had received performance evaluation reports that reflected satisfactory performance before the gratuity payments were made.

APPROPRIATE DISCIPLINARY ACTION

"The authority was satisfied with the performance of these persons, and that the circumstances of their early departure were justified and warranted recognition by payment of gratuity for the period of work," the ministry said.

But yesterday the auditor-general said he was not persuaded by the ministry's position, and that his department had referred the matter to the Ministry of Finance and Planning (PAC) for appropriate disciplinary action.

"The explanation was not satisfactory, we tend to take a hardline approach on matters like this. We believe the government ought not to spend more money than it needs to," Mr. Strachan told the PAC.

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