Acquisition and use of hospitality resources by Healthway – Investigation report

19 February 2015

In July 2014, the Public Sector Commissioner initiated an investigation into activities and practices at Healthway associated with the management and oversight of tickets, hospitality and other benefits in high value sponsorship agreements. This action was taken after receiving a formal referral from the Office of the Auditor General.

Issues covered by the investigation and assessment report both relate to the extent of compliance by public sector bodies and employees with the principles of conduct in section 9 of the Public Sector Management Act 1994. The investigation considered the appropriateness of arrangements in the context of Government procurement policy, the adequacy of organisational governance arrangements and whether any public officers had derived a private benefit.

The investigation of hospitality resources identified inappropriate arrangements in a small number of sponsorship contracts and found some deficiencies in related governance controls. The investigation did not conclude that funding decisions were compromised by these deficiencies or that any Healthway officer deliberately set out to procure such resources for the purpose of deriving a private benefit. It did establish that integrity risks associated with corporate hospitality were not adequately addressed and that some hospitality resources were used in a manner that provided a private benefit to some Healthway officers.

Page last updated 9 April 2015