Statement on PAC report into Brangam & Bagnall

Health Minister Michael McGimpsey today said that his Department would fully address all the findings and recommendations of the Public Accounts Committee (PAC) report on Brangam and Bagnall.

The PAC report follows the Northern Ireland Audit Office report on the Brangam and Bagnall case which was published last July.

The Minister said: “I accept that avoidable mistakes and delays arose and I am determined to prevent any such repeat in the future. My department will contribute fully to addressing all the findings and recommendations of the PAC report. This is in line with our continuing drive to secure the best quality and value health and social care services for the public.

“My Department has a ‘zero tolerance’ attitude to fraud and where fraud is found I expect urgent action to be taken to deal fully with the matter and recoup the losses. In this case, I would emphasise that my Department recovered the £278,000 loss and has reinvested this in front line services to patients and clients.

On the procurement issues, the Minister said when the difficulties with the re-tendering of legal services had come to his attention, he had taken immediate steps to bring these services back into the public sector.

He said: “While this fraud took place before I took up post, I have taken action to prevent such a situation from happening again. Last year, I put in place extensive measures, aimed at preventing any such fraudulent activity in future. In particular, I took the decision that all future legal services should be provided in the public sector by the Directorate of Legal Services in the Central Services Agency (CSA). These services will be transferred to the new Business Support Organisation, under the Review of Public Administration in April 2009.

“In addition, after the fraud was discovered, the Northern Ireland Audit Office (NIAO) recognised the prompt and positive action taken by my Department in involving the PSNI, Law Society, Forensic Accountants and solicitors. Additional controls had already been implemented in full when the NIAO report was produced.”

A full Memorandum of Reply to the PAC, giving the formal response to all the recommendations, will be prepared and issued to the Department of Finance and Personnel in due course.

Notes to Editors:

• All future legal services will be provided in the public sector by the Directorate of Legal Services in the Central Services Agency (CSA). These services will be transferred to the new Business Support Organisation, under the Review of Public Administration in April 2009.
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