DHB chairman feels contempt for fraudsters

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Sat, 06 Dec 2008 12:00a.m.

Former IT manager Michael Swann

Former IT manager Michael Swann

The chairman of the Otago District Health Board, Richard Thomson, says he feels contempt for the two men who stole $17 million in public health money.

Former IT manager Michael Swann and associate Kerry Harford used false invoices to defraud the health board.

"These guys haven't just stolen money, they've stolen health opportunities from old and sick people," Mr Thomson says. "They've stolen equipment opportunities from our staff, I frankly just hold them in contempt."

The pair stole the money over seven years while Swann served as the board's IT manager. As part of their scheme, Swann would authorise the payment of fake invoices to a company called Sonnford Solutions, owned by Harford. Harford then took a 10 percent cut, forwarding the remaining 90 percent to Computer South - a company controlled by Swann himself.

Swann used the money to live a life of luxury, which included sports cars, holiday properties and a 50 metre launch which had flat screen TVs in every room.

"We're looking for $35 million for capital investment, and that's of half that amount," Mr Thomson says. "Now we're struggling to find that $35 million and you look at that $17 (million) and you say, 'just where the hell is the justice in that?'"

Justice Stevens denied applications by both men for bail, rejecting Swann's argument that he could help with the sale of his assets.

The pair will be sentenced in the new year.

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Comments

31 Dec 2008 06:39p.m.

Martin wrote:

It's hard to believe that an incompetent fool such as righteous Dick Thompson and the Catholic Mafia that is ODHB's Chief Executive are going to get away with pointing the finger and wimpering on about how the elderly and sick will suffer. National needs to fulfill their pre-election promise and restructure the beaurocracy and multiple levels of unproductive senior and middle management bleeding our hospital's dry. One would also have to ask how many back handers, how much internal greed and how little accountable lead to this fraud happening in the first place. What are these catholic amateurs going to say to St Peter when their time comes. I am sure of one thing it is going to be a downhill ride for more than a few of them.

07 Dec 2008 09:28a.m.

Adrian wrote:

might be better to say nothing and be thought a fool mr thompson, rather than speak and confirm it. the only mistake these 2 guys made is greed, should have been overseas years ago with their loot.

your board and the auditors should be replacing that $17m, should all be resigning, u were responsible for those 2 crooks and u have lost the taxpayer $17m. i have been on a number of boards, private i must add and we had systems in place that would have picked this up within 12 months.

it was a case of was no-ones money but the taxpayer, in this case outright theft instead of the govt administered theft that goes on every day in every govt dept

07 Dec 2008 06:22a.m.

gurkin wrote:

yea and we feel contempt for DHB chairman Otago District Health Board, Richard Thomson .For all the money he and those like him .steal .and calls wages. There all thieves its just they hav found a way of making there thieving legal.Just like the MPs did when they were caught stealing. But mr DHB chairman, Richard Thomson is ovr paid .just like all the ovr paid scum, they dont want to be held accountable when they hav failed to do there job. Its called pass the buck. Hell they dont even want to admit there excess greed is the cause of all the poverty, violence in NZ ..Poverty that is causing ,violence , children to be killed. and crime to grow. violence against the elderly .woman, men , children..

06 Dec 2008 09:48p.m.

karl wrote:


Yea and Mr Thomson is trying to deflect the shortcomings of his board for not picking up on the losses in 2000 when they started to occur, any business would have procedures in place to detect this sort of flow of cash to a debtor, and question what was being supplied, especially when the person involved was signing way over their limit of responsibility, and the fact it wasnt picked up through almost 12 audits in 6 years is further proof that the incompetence is ripe from the top down, how can he stand there and say, these two have stolen treatment from the elderly and the sick when it was him charged with being custodian of these public funds and he has failed miserably in his role. He is trying to portray himself as a righteous crusader, where as if he had been doing his job this would have been detected much earlier in the piece, and the amount taken would not have been to the extent that it is todate, if it is accountability he wants, he needs to look in the mirror, and it is perhaps obvious that a full audit is undertaken of all the ODHB finances, if they couldnt detect this for six years, what else is flowing out the door..
Accountability starts at the top Mr Thomson.