Premier Colin Barnett will meet Public Sector Commissioner Mal Wauchope today to discuss the future of prominent Healthway chairwoman Rosanna Capolingua and her board after a damning investigation uncovered a VIP ticket scandal, plunging the taxpayer-funded health promotion agency into crisis.
The investigation, conducted by the Public Sector Commission after irregularities were uncovered by the Auditor-General, found Healthway procured thousands of tickets worth hundreds of thousands of dollars through sponsorship agreements.
Some of these went to family and friends of Dr Capolingua, former Healthway executive director David Malone, deputy chair Cathcart Weatherley and other staff.
The investigation found the volume and nature of hospitality benefits obtained via sponsorships of the Perth Wildcats, Perth Glory, WA Cricket Association and concert promoter Mellen Events were “excessive and inconsistent with the obligation to be scrupulous in the use of public resources” under the Public? Sector code of ethics.
The investigation of a sample of 58 sponsorship agreements over four years found more than half of all tickets obtained by Healthway under its contracts were used for private benefit or could not be properly accounted for.
It also revealed tensions between some board members and between some board members and Mr Malone, which had distracted the board from its integrity and fiduciary oversight role.
“The investigation concluded that 43 per cent of hospitality? resources obtained (by volume) were used for a legitimate business purpose, 21 per cent of these resources were used in a manner considered to represent a private benefit to Healthway officers, their families and friends, and 36 per cent of the hospitality could not be properly accounted for,” the investigation found.
Use of the tickets also has fringe benefits tax implications that “have not been addressed by Healthway”.
The PSC found “insufficient controls” were established for sponsorship contracts to ensure that hospitality resources were used solely for a public purpose.
Dr Capolingua would not? answer directly when asked yesterday if she would resign over the findings. “I will discuss this with the Premier.
To be chair of Healthway is a great privilege,” she said. “I completely accept the Public Sector Commission’s recommendations and acknowledge that its findings are correct.”
Mr Malone left his job last week just 18 months into a five-year contract. It is understood he? received a payout, though he and Healthway, including Dr Capolingua, are prevented from talking about the circumstances of his departure by a confidentiality deed.
Mr Barnett said he planned to meet Dr Wauchope today. “The Public Sector Commissioner has identified serious concerns about matters related to corporate hospitality,” he said.
“This matter raises concerns about the future of Healthway as it is currently structured.”
A sample of 58 sponsorship agreements over four years found 15 contained “leveraging plans” that included extra hospitality entitlements of a type “vulnerable to use in a way that is inconsistent with the general public sector guidelines on corporate hospitality”.
Healthway had access to more than 1150 general admission tickets to “elite sporting events and concerts” and more than 650 opportunities to? attend events with VIP level access and catering.