Micheál Martin, the Tánaiste, has expressed his worries regarding the disclosure that two firms, which were awarded contracts worth over €1.5 million by University Hospital Limerick (UHL), without going through a competitive procurement process, were partially or fully owned by staff members at the hospital.
Martin emphasised the necessity for distinct boundaries and separation between staff-owned companies and the procurement side of operations, advocating for complete transparency and prevention of conflicts of interest. On Tuesday, he called for further investigation into the issues highlighted in a HSE internal audit report and urged for a comprehensive explanation and clarification concerning the audit’s findings.
The HSE’s CEO, Bernard Gloster, prompted audits of hospitals in Limerick, Galway, and Tallaght following his appointment to oversee progress in reducing waiting lists and ensuring effective use of public funds. He noted on Tuesday that the Limerick report highlighted significant procurement challenges, which they were committed to address.
Questions about the potential re-evaluation of the practice of engaging staff privately as part of initiatives to reduce waiting lists, as proposed by the internal auditors, weren’t answered by the HSE.
Gloster is due to participate in a committee hearing at Oireachtas on Wednesday, where he may face questions on the findings of the internal audit. It has been confirmed by the management of the University of Limerick Hospital Group that there isn’t a dedicated procurement function.
An audit report revealed that two contracts, one valued at €714,087 and another at €919,885, were awarded to distinct companies directed by staff from the hospital in Limerick at the time when the contracts were implemented. In addition, internal auditing disclosed that a separate company that was granted a contract worth nearly €400,000 had a HSE employee, based in a different hospital, appointed as its director. Auditors did not uncover any proof of the employees’ involvement in the distribution of the contracts from the HSE.