CDHB head steps down after Stuff investigation reveals potential conflicts of interests
Canterbury and South Canterbury District Health Boards chairman Murray Cleverley is under investigation.
Three civil servants have stood down from their positions after a Stuff investigation revealed potential conflicts of interests.
Chairman of the Canterbury and South Canterbury district health boards Murray Cleverley and Otakaro's Gerard Gallagher and Simon Nikoloff each stood down from their respective roles on Wednesday as the State Services Commission (SSC) escalates an investigation into their activities.
The deputy chairman of the Canterbury District Health Board, Sir Mark Solomon, and the deputy chairman of the South Canterbury District Health Board, Ron Luxton, will act as chairs of their respective boards until the inquiry is completed.
State Service Commissioner Peter Hughes has expanded his inquiry.
The moves came after a Stuff investigation looked into potential conflicts of interest when they were working in investment facilitation for the Canterbury Earthquake Recovery Authority (Cera).
READ MORE:
* Cera staff to be investigated over private company dealings
* Labour calls for Auditor-General to probe alleged conflicts of interest
* Cera staff running own property business on the side
* Canterbury health board chairman talking with buyers for buildings
* CDHB chairman declares possibility of 'perceived' conflict
Cleverley said he would cooperate with any investigation and was confident he had carried out his responsibilities in a proper manner.
Gerard Gallagher, photographed when he was general manager of Enterprise Ashburton.
"I have made the decision that the right thing to do is to step aside from these roles for a period of time to allow for a review of matters relating to the management of perceived and/or actual conflicts of interest," he said.
The SSC announced on Wednesday it was appointing a special investigator to conduct a wider probe into private dealings by Cleverley, Gallagher and Nikoloff.
Earlier this week, the Department of the Prime Minister and Cabinet (DPMC) and the SSC started looking into the trio's private property dealings conducted while they were working for Cera.
The SSC said material uncovered so far showed the investigation should go beyond Cera to roles the three have subsequently held in Government agencies.
Cleverley was manager of the Greater Christchurch Investment Strategy until early 2015. Gallagher and Nikoloff transferred to Cera's successor Otakaro Ltd when Cera was disbanded in April last year.
The three were shareholders of a company formed in 2014, through which Gallagher tried to do a Christchurch property deal worth $2.6 million and which would earn their company a $300,000 finder's fee.
State Services Commissioner Peter Hughes said he would appoint a qualified investigator to carry out the wider inquiry.
"SSC is working to finalise an appointment, which will be publicly notified as soon as possible. Terms of reference for the investigation are currently being prepared and will be published once they are finalised. This is expected by the end of the week."
Hughes said he wanted an interim report by the end of February.
"These allegations are very concerning and if established would be a serious breach of the standards of integrity expected in the public service," he said.
"The DPMC has been looking into the allegations made, with the assistance of SSC, to gain a better understanding of what took place.
"On the basis of that work and the need to look beyond Cera, I have formed the view that there are grounds for a wider investigation.
"It will investigate the actions of the three individuals while employed by Cera and in subsequent roles they have held in government agencies, in relation to the allegations concerning the identification and management of conflicts of interest.
"New Zealanders need to be able to have trust and confidence in public servants and the public service. These allegations raise questions that cannot be left unanswered."
"The code of conduct for the State Services makes it clear that it is unacceptable for any state servant to use their role to advance private business interests or seek any sort of personal benefit."
- Stuff
