Editorial: Waikato DHB chairman should resign

Nigel Murray, former Chief Executive on the Waikato District Health Board. Photo / Christine Cornege

Editorial

It is three weeks since Dr Nigel Murray resigned as chief executive of the Waikato District Health Board.

His departure was embarrassing for the board and for Murray, given that his resignation was announced in a brief statement saying that an inquiry found that he had spent more than an agreed $25,000 in relocation costs, and "other unauthorised expenses involving potential financial breaches of the chief executive's obligations".

Some of these details may be revealed when Audit New Zealand concludes an investigation into the processes and management of Murray's expenses. Board chairman Bob Simcock has said the funds owed by Murray amount to less that $50,000.

The fact that Murray owes his employer anything, let alone the sum indicated by Simcock, reflects poorly on systems the board had in place to monitor expenses.

Moreover it would not seem beyond Murray's means to sort out the issue. At the time he quit he was on $560,000 a year.

Murray started the job at Waikato in July 2014 after shifting back to New Zealand from Canada. His relocation costs for the Hamilton post were incurred then.

There is no apparent reason why it took so long for the costs to be identified, or require a two-month investigation by a barrister to be confirmed.

It has emerged that concerns were raised with Simcock about the suitability of Murray for the chief executive's role.

The Senior Medical Staff Association wrote to the chairman in 2014, saying clinicians were not properly represented in the decision.

The Association of Salaried Medical Specialists say their members met Simcock in early 2014 to urge the board not to hire Murray. The association had been on the other side of the table to Murray during bitter wage negotiations in 2007.

Sue Moroney, a former Waikato Labour MP, was another to voice concerns, saying she met privately with Simcock before Murray was hired.

Simcock has defended his position, saying Murray's recruitment involved a group of people, was agreed by the board and was not his decision alone.

He has pointed out that he took action straight away when three senior DHB managers approached him with concerns about Murray's expenses.

Somewhat belatedly the Ministry of Health has got involved in the controversy, and will brief the State Services Commissioner Peter Hughes.

The Murray saga has created a level of disquiet at the billion dollar publicly funded operation.

Simcock, a former National MP appointed by then-Health Minister Jonathan Coleman in 2013, says he sees no reason to tender his resignation.

He is wrong. The role of a board chair, aside from providing effective leadership, is to ensure effective accountability and governance.

In the circumstances, Simcock has to accept that some of the fallout of the ill-starred appointment lands at his feet.

The right thing to do is let the board continue under leadership untouched by the Murray controversy.