HSE says its financial regulations breached

The appointment of a consultancy part-owned by the chairman of a hospital group to carry out a review of local maternity services breached HSE financial regulations, a review by the HSE audit unit has found.

The West/North West Hospitals Group said its chairman, Noel Daly, has had no involvement with D&F Health Partnership Ltd since his retirement from the firm in 2011 and no involvement in its appointment to conduct the controversial review.

Sinn Féin has alleged a conflict of interest after it emerged that Mr Daly holds a 50 per cent stake in the firm. Health spokesman Caomhghín Ó Caolaín called on Minister for Health James Reilly to explain his role in the appointment of Mr Daly as chair of the hospital group.

Major cuts

The report by D&F Health Partnership, as revealed in

The Irish Times

this month, recommended major cuts to maternity services in the west and northwest.

A review by the HSE internal audit unit found that the procurement of services from the consultancy was not in accordance with financial regulations, Dr Reilly told the Seanad on Wednesday.

He said HSE director general Tony O’Brien had written to the hospital group outlining his concerns and seeking to ensure the recommendations in the review were implemented.

Recommendations

Yesterday, the group said it accepted the recommendations that regulations are complied with for all future expenditure and called for the establishment of a register of members’ interests at the group for review when potential suppliers are being sourced.

The group said D&F Health Partnership had been chosen for its considerable experience within the health sector and the urgent requirement to start the review of maternity services. The firm was paid €20,000 plus VAT for its services.

It said Mr Daly retired from the firm in December 2011. He was appointed as unpaid chairman of the hospital group in June 2012 and resigned as a director of D&F Health Partnership a week later.