Some Waikato health board staff felt intimidated by former chief executive Nigel Murray, and those who confronted him over his spending showed real courage.
Nigel Murray Photo: RNZ / Andrew McRae
That's among the conclusions of a damning report by the State Services Commission, released Thursday, into the spending of the former Waikato District Health Board chief executive.
The report found that Dr Murray spent $218,000 of DHB funding on travel, accommodation and related expenses during his time in the job, from July 2014 until 5 October, last year.
More than half of these expenses by cost were unjustified, the SSC said, adding the DHB has identified $74,265 dollars as needing reimbursement. Of this, $54,831 dollars had been reimbursed with $19,434 "in dispute". Lawyers acting for Dr Murray said today that $20,495 claimed by the DHB had been repaid.
Total spending on unauthorised international travel in 2016 amounted to $30,059 dollars, and included four separate trips to Sydney; Vancouver and San Franciso; Los Angeles, New York, Moncton and Montreal; and Canada, from mid September through to 28 December.
"Three instances of travel organised by Dr Murray over a reasonably short time frame, and with differing accounts of the purpose, raised questions for me about his conduct," said the report's author John Ombler, adding at the time of Dr Murray's resignation, last October, he had reimbursed the full cost of this travel.
Mr Ombler said that on at least ten separate occasions, travel by Dr Murray "appears to be personal expenditure, inappropriately (and contrary to policy requirements) charged to the Waikato DHB."
There were too many instances of expenditure on travel by Dr Murray that were not undertaken in accordance with the policies, which meant others could draw a conclusion that personal benefit had arisen, he said.
Two trips to Sydney within the same week was an example, with a second trip booked to occur seven days after the first without appearing to be due to attendance at a Board Meeting.
"No clear justification was provided for the airfare," he said.
DHB staff "made repeated efforts over two years to bring the issue of overspending and spending outside policy to Dr Murray's attention," he said.
Adding, however, that there was a workplace culture at the DHB where some people felt intimidated by the CEO, and that this directly contributed to the delay in escalating and resolving the issues.
Mr Ombler said the former board chair, Bob Simcock, had asked during the SSC investigation, why unauthorised travel was paid for by the DHB. A question he says is fair, adding that there appear to be deeper issues of organisational culture at play.
"There were people who knew about these issues and yet, even with functions such as internal audit, a Board, an Audit and Risk Management Committee, and a Protected Disclosure Policy, they were not dealt with."
He said staff put Dr Murray's response to questions about his spending down to a question of his particular style.
"For example, the executive director, corporate services advised me that she: 'Had no suspicions at that point [November 2016] that Dr Murray was behaving inappropriately and simply thought that Dr Murray was bad at detail and needed support with paperwork'. The executive director, strategic projects thought it was just: 'Nigel being Nigel', and 'He was not one for great detail and rarely wrote anything other a short email or letter'."
Mr Ombler said the fact that DHB funds were used for personal expenditure should have been raised earlier, but the failure to do this was not an indictment of DHB staff.
"Notwithstanding the delays, in the end, those staff showed commendable courage in, first, confronting Dr Murray, and then, after receiving no action on the matter from Dr Murray, in escalating to the Chair [Bob Simcock]. They deserve our thanks, but the formal structures have been found wanting."
Lawyers representing Dr Murray said on Thursday he had agreed to pay the remaining $20,493 dollars claimed by the board. Cullen - The Employment Law Firm did not respond to a RNZ request for comment on when it will be repaid.
Mr Ombler also said in his report that a wider set of interviews than those nominated by Dr Murray, at his former employer, Fraser Health in British Colombia, would have been advisable for the DHB.
Mr Ombler specified Wynne Powell, who was appointed chair of Fraser Health "following performance concerns" shortly before Dr Murray's departure. Mr Powell declined to be interviewed by RNZ today.
