The board of the State Government’s key health promotion body, Healthway, must have known about the misuse of tickets to major venues and sporting events, according to Premier Colin Barnett.
An investigation by the Public Sector Commission (PSC) concluded some staff and board members misused about $220,000 worth of tickets to sport and music events linked to Healthway’s sponsorship deals.
“The amount of tickets, seats, corporate box entitlements that were coming back to Healthway, and were used for private benefit, is simply unacceptable,” Mr Barnett said.
The commission’s report found the board was not told about hospitality arrangements in sponsorship contracts, but added:
“No board members questioned the basis for the hospitality or challenged the probity of Healthway having access to such benefits,” it stated.
Mr Barnett said the lack of oversight was unacceptable.
“I think the board and the senior management have failed,” he said.
“I cannot accept that the board would not have known what was happening.”
Mr Barnett said when people were in public and paid positions, there would be occasions when it was necessary to attend events and be afforded hospitality.
“But in this case, it was clearly grossly excessive,” he said.
Mr Barnett said the future of Healthway in its current form was in doubt.
“I’m going to meet with the Public Sector Commissioner today and we will go through his findings … but I think Healthway as an organisation now is seriously in question,” he said.
Among those found to have gained personal benefit from the misuse were chair Rosanna Capolingua and former executive director David Malone, who recently resigned from his position.
Dr Capolingua remains the chair of the board and distanced herself from the issue.
She said she moved quickly to end the practices criticised in the report when they were initially identified by the auditor-general.
The Premier would not be drawn on Dr Capolingua’s future.
“I will discuss this with the Public Sector Commission but I take it as an extremely serious situation,” he said.
Mr Barnett said the government remained committed to the promotion of health messages about issues such as smoking, drinking, cancer and obesity.
“They are not in jeopardy but I think the structure will be reviewed and also the whole method of operation,” he said.