Oireachtas Joint and Select Committees

Thursday, 23 July 2015

Joint Oireachtas Committee on Health and Children

Procurement Practices for the Purchase of Hospital Supplies and Equipment: Beacon Hospital and Health Service Executive

2:00 pm

Mr. Michael Cullen:

To address Deputy Troy's questions, I first became aware of these allegations on Thursday, 2 July, when we received a call from the investigator at RTE's "Prime Time" asking us for a copy of our employee guidelines, staff handbook and codes of conduct. We thought it was an unusual request and were a little mystified as to why we would be asked such a question. It became more apparent later that day when the employee at the centre of the allegations came to see me with a letter he had received from "Prime Time" containing all the allegations that were the centre of his participation in the programme.

Deputy Troy asked when the investigation would be complete. I am hoping it will be complete within a couple of weeks. I cannot give an exact time because it is ongoing. The Deputy also asked how much was involved. All we can say at the moment is that the employee allegedly received a holiday from the supplier which was, according to the programme, to the value of €8,800 or thereabouts.

Deputy Troy asked if we receive HSE work. We do. We tender for HSE waiting list initiative work, and in 2014 that was to the value of approximately €250,000. We have tendered this year for a greater level of work and I would anticipate that it could be worth more than €1 million but probably less than €1.5 million for the calendar year, although I do not know for sure at the moment.

Deputy Troy asked if company law is strong enough. I believe it is strong enough. There is a Garda investigation into this matter. We have been in touch with the Garda twice following the programme and will participate fully in any investigation and provide it with anything it wishes to conduct it.

Deputy Ó Caoláin asked if the Beacon Hospital was referenced in the September 2014 investigation. I believe not. As I said in response to the earlier question, the first we heard about it was on Thursday, 2 July. We had no prior knowledge or indication of a problem in our procurement department.

Deputy Ó Caoláin asked if we were investigating other suppliers. I can confirm that we are.

We are examining our entire procurement process and procedures and engaging in a historical look-back and comparison of past activity.

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