No rorting found in Health Department redundancy, but process questioned

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The Tasmanian Health Department’s handling of a senior bureaucrat’s redundancy has exposed it to “questions of consistency and transparency”, a review has found.

The State Service Management Office has reviewed the circumstances of a redundancy package paid to the former head of the department’s media team, Russell Kelly.

Mr Kelly accepted a voluntary redundancy payout on February 24, only 14 days after he had accepted an internal transfer.

At the time, Opposition Leader Bryan Green claimed in Parliament the payout was evidence of “rorting”.

The office’s director Frank Ogle found “no impropriety” by Mr Kelly “in any way in breach of processes or guidelines”.

Mr Ogle also made four recommendations for changes in department processes, including more staff training on handling redundancies.

Savings gained by redundancy ‘unclear’

Mr Ogle found Mr Kelly’s transfer from the Health Department’s media team to a new position, which was culled soon after Mr Kelly took it up, “exposed” the department to “questions of consistency and transparency”.

He found Mr Kelly had initially expressed an interest in taking a redundancy in November 2014 while in his former role, but in January 2015 knocked back the redundancy he was offered on the grounds that it “was not an attractive package”.

A month later, having started in the new position of health reform project manager, Mr Kelly accepted a different redundancy offer, and left the state service in March.

Mr Ogle noted it was “unclear” how much the department would save over the long-term by making Mr Kelly redundant, because his substantive position heading up its communications office had been back-filled.

Minister demands apology

Health Minister Michael Ferguson told Parliament he accepted the recommendations and said the Opposition must now withdraw the suggestion that “rorting” occurred.

“It has found no evidence of dishonest, deceitful practices, rorting or misconduct by any individual involved in the process,” he said.

Mr Ferguson told State Parliament Mr Green’s initial comments about Mr Kelly’s redundancy were “disgraceful and unfounded”.

He told Parliament Mr Ogle’s report has found “no wrongdoing” on behalf of “any individual who was involved”.

He acknowledged the report had found “the initial paperwork was incomplete”, but said it had concluded “all requirement of the voluntary redundancy have been and will be satisfied”.

He went on to accuse the Opposition Leader of an “unfortunate” quest for “cheap headlines”, and claimed in Parliament that Mr Green was “bitter” and “revengeful”.