KEY POINTS:
A fresh review of the handling of a multimillion-dollar Hawkes Bay health contract has been widened, after concerns were raised over a conflict of interest and the treatment of a whistleblower.
Health Minister Pete Hodgson said yesterday that he had asked for the review of the Hawkes Bay
District Health Board's community services contract to be widened so that the matter could be "laid to rest".
The controversy revolves around Peter Hausman, who was appointed to the board in 2005 by then Health Minister Annette King.
The board had already decided to contract out community services and a company Mr Hausman was involved with was interested in getting the job, reportedly worth up to $50 million.
Mr Hausman declared his interests and said he would not be involved in operational matters regarding the contractual process.
Minutes from a board meeting also show that when Mr Hausman was appointed to the board its chairman, Kevin Atkinson, immediately noted that the potential conflict needed to be managed with the "utmost transparency and consistency".
The company Mr Hausman was involved with was eventually named the preferred bidder for the contract.
But the trouble began when somebody - the person who would later become known as the whistleblower - intercepted an email from Mr Hausman to members of management at the health board.
The email suggested Mr Hausman knew something of the terms of reference being drawn up between the board and the company.
The woman who intercepted the email alerted the board chair and eventually, after legal consultations, the contract process was terminated.
But allegations were raised over the weekend that the whistleblower's job security had been threatened when she drew attention to the matter.
The Herald on Sunday reported that the unnamed woman's notes of a meeting showed she was told "management had power" over her.
Months later she was told her job was being merged with another and she would have to apply for a new job.
The Herald on Sunday said the woman took a personal grievance case against the health board and it was settled with a cash payout on agreement that neither party was at fault.
The National Party yesterday called for the Auditor-General to take a look at what happened, and said the Health Minister knew what was going on but "absolutely nothing was done".
But Mr Hodgson said he had already ordered a review of the matter after receiving a letter just over a week ago from Mr Hausman requesting one.
Mr Hodgson asked the Director General of Health several days ago for a fresh audit of Mr Hausman's actions, but yesterday requested that the review be widened to include the board as whole.
"I must say I don't expect to find anything," Mr Hodgson said. "None of the allegations is new."
"I just think this is a matter which needs to be laid to rest."
Whistleblower claims
* $50 million community services contract sought by health board member.
* Whistleblower "threatened" after telling of possible leak.
* Whistleblower leaves with payout after grievance case.
* Minister orders review but doesn't expect to find anything.
