Action needed on Healthway benefits rort
The Healthway board has plenty of questions to answer about the agency’s indulgence in hundreds of thousands of dollars worth of free tickets to events it sponsors.
Premier Colin Barnett indicated yesterday that the health promotion agency was on notice over the scandal and that changes would be made. He made it clear he believed the Healthway board should have been aware of the extent of free hospitality being enjoyed by senior Healthway figures and their families and friends and described the amount of benefits as grossly excessive and unacceptable.
Most West Australians would agree and would expect a firm response from the Government.
A Public Sector Commission investigation of a sample of 58 Healthway sponsorship agreements over four years found 15 included extra hospitality entitlements, giving Healthway access to more than 1150 general admission tickets to “elite sporting events and concerts” and more than 650 opportunities to attend events with VIP level access and catering.
It is perfectly reasonable for the agency to get something in return for its substantial sponsorship contributions. This is standard practice for sponsors of major sport and entertainment events.
But as the Public Sector Commission investigation concluded, the volume and nature of these benefits obtained through Healthway’s support of the Perth Wildcats, Perth Glory, WA Cricket Association and concert promoter Mellen Events were “excessive and inconsistent with the obligation to be scrupulous in the use of public resources”.
The public resources part of that quote is relevant. Healthway gets $21 million a year in taxpayers’ money and last financial year distributed $11 million in sponsorship to sport and arts organisations to spread messages about tobacco and alcohol, physical activity, nutrition and obesity.
This promotion of healthy lifestyles is a worthy pursuit and Healthway generally fulfils its role competently. But the value of its work should not mean it can avoid scrutiny for the way in which senior staff and board members and their families have gained personal benefits from their sponsorships.
The Public Sector Commission investigation revealed tensions between some board members and former executive director David Malone which it said had distracted the board from its integrity and fiduciary oversight roles. This is a disturbing finding which adds weight to Mr Barnett’s push to bring in some changes.
