The West Australian Well being Department’s $ three.6bn a year procurement plan is at risk of fraud due to the fact of a “systematic failure” to place satisfactory processes in location, according to the Corruption and Crime Commission.
The CCC tabled a report in the WA parliament on Thursday warned the department did not have “adequate processes in area to stop fraud and corruption across its multibillion dollar overall health procurement activities”.
The report claimed the “significance of the systematic failure can not be overstated when billion of dollars are invested on well being procurement annually”.
“It is a difficulty that calls for quick urgent attention from the WA well being executive,” the report stated.
The CCC explained it was failure of the method that allowed a former services improvement manager, Wathumullage Wickramasinghe, to consider $ 490,300 from the division above six years till 2010.
Wickramasinghe awarded contracts to engineering consultant Eddy Kalani and his business ESM Engineering.
In January this 12 months Wickramasinghe was jailed for 4 many years and Kalani two.
The report found projects costing far more than $ 20m “receive strong oversight”, even though people tasks such as people managed by Wickramasinghe received “far much less scrutiny”.
“Consequently, a figure such as $ 5m, which would normally be considerable in other contexts, falls off the radar,” the report states.
The CCC identified the circumstances surrounding Wickramasinghe’s corrupt perform had been not exclusive to one particular hospital.
“It was a symptom of a systemic failure to manage fraud and corruption dangers in procurement across WA overall health,” it says.
The WA Labor leader, Mark McGowan, attacked the Barnett government for not addressing the troubles inside of the well being department.
“This is a damning report into the Barnett government’s managing of the wellness program,” he mentioned.
“The Health Department is the largest government company in WA and this report says there is systemic failure within the management of $ 3.6bn of purchases from that division.
“And Mr Hames and Mr Barnett have abandoned the corruption and fraud management in 2009. They need to have to come and say why they abandoned it and how did it get to this?”
McGowan explained Kim Hames ought to resign from his health portfolio.
Hames explained the CCC did not discover any widespread corruption inside the health method.
He did say it was “bad” the division lacked the controls to appropriately check procurement, but said the CCC investigation was sparked by an incident that happened even though Labor was in power.
“I’m comfortable that it hasn’t occurred on my watch but I’m concerned it might happen in the future prior to the procedures suggested are in area,” he mentioned.
WA corruption report finds $three.6bn overall health system at chance of fraud
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