Fremantle Hospital Board resignations (A/Min)

5/10/93

Acting Health Minister Roger Nicholls has accepted the resignation of all but one of the members of the Board of Management of Fremantle Hospital after an independent inquiry into a computer project found serious deficiencies in the application and control of public monies.

Mr Nicholls said the board members had decided to tender their resignations following a meeting with Health Minister Peter Foss on October 1.

One board member, who was believed to be unwell, had not yet made clear his intentions regarding his position on the board, Mr Nicholls said.  However, with the acceptance of the other resignations, the board ceased to operate and would be formally dissolved.

"I understand that Mr Foss drew the board's attention to its responsibility to control and manage Fremantle Hospital and to the significant breakdown which had occurred in that control and management," Mr Nicholls said.

"Mr Foss expressed to the board his feeling that they had a joint responsibility in this matter and his belief that, in the circumstances, their most appropriate action would be to resign.

"Mr Foss told the board he was not levelling blame or attributing fault in what was a complex matter.

"However, this did not change the fact that an independent inquiry into a computer project at the hospital found serious deficiencies in the application and control of public monies and an apparent disregard for basic management controls.

"It is clear that a project estimated to cost $36,000 was permitted to blow-out to $1.3 million - and potentially to more than $2 million if completed - without any control being exercised by the board.

"The report found that the board had no established process for the proper approval of projects such as the computer project in question.

"Accordingly, I have accepted the resignations."

Mr Nicholls said he would refer the letter of resignation, which includes suggestions regarding a proposed independent review of the relationship between the Health Department and Western Australian teaching hospitals, to Mr Foss when he returned to his duties next week.

The acting chief executive officer of Fremantle Hospital, Dr Mike Galvin, will run the hospital on a day-to-day basis until a decision has been made about the appointment of a new board.

Media contact: Hugh Ryan 221 5468 or 222 9595