I propose to take Questions Nos. 724 to 727, inclusive, together.
My Department and the HSE first became aware that an issue had arisen in relation to the commissioning of the review of maternity services on behalf of the West/North West Hospital Group from a media query on 19 May 2014. The Director General of the HSE informed my Department that day that he had requested a team from the HSE’s Internal Audit Unit to conduct a report on the matter.
In the course of its investigations HSE Internal Audit was assured by the CEO that he had made the decision to source D&F Health Partnership based on their suitability for the project, and that the Chair had no role in this. This was consistent with the documentation examined by the Internal Audit Team. The investigation found that while Mr. Daly had disclosed to the Board that he was a former employee and former Director of D&F Health Partnership, he failed to disclose that he continued to hold a 50% shareholding in the company. The investigation also established that the procurement of services was not in accordance with HSE National Financial Regulations.
On 22 May 2014 the findings of the audit were presented to the Director General of the HSE, who informed my Department and wrote to both Mr. Daly and the CEO to make clear that any further breaches of procurement rules would be unacceptable and that Mr. Daly should have made it clear to board members that he retained a 50% shareholding in the company concerned. The letter to the Chair of the Board also requested that the Chair take immediate steps to ensure that a register of members’ interests is established and maintained at the hospital group so that potential conflicts of interest are avoided.
My Department and the HSE are focused on implementing the Government’s reform programme for acute hospitals to deliver better outcomes for patients. The progress made to date by the West North West Hospital Group demonstrates that the establishment of acute hospitals into a small number of groups, each with its own governance and management, will provide an optimum configuration for hospital services to deliver high quality, safe patient care in a cost effective manner.