HSE-funded body suffers ‘serious fraud’

A major HSE-funded group tasked with aiding frontline services has suffered instances of “serious fraud” at its organisation in the past three years.

The group, which has not been identified, confirmed the situation in the latest batch of health service internal audits, obtained by the Irish Examiner under the Freedom of Information Act.

As part of scheduled checks into how taxpayer funds are spent, the HSE’s audit team sought details from 17 leading groups funded in the HSE South.

These included voluntary groups with charitable status, commercial entities, those connected to religious orders and some State bodies.

Among the questions asked were each groups’ board make-up, how conflicts of interest are addressed and explanations on whether they were registered as a charity or another legal entity.

However, when asked if each group was aware “in the current or prior year of any suspected or actual fraud or misappropriation”, the audit noted: “One stated that two major frauds were discovered in recent years, which had been notified to the HSE and gardaí.”

The report did not elaborate on the circumstances involved. However, this is understood to be the first time the concerns — which relate to a major HSE-funded group in the region — have been made public.

The situation is likely to have impacted on the funds available to patients and those in need who regularly benefit from the service.

The list of groups, which has been seen by this newspaper, includes mental health, teen, medical, disability and religious organisations.

The audit was concluded in Jan 2012 but only made available yesterday, meaning the “fraud” issue took place between 2010 and 2011.

Among the other issues revealed as a result of the audit are that a third of the voluntary groups are allowing some of their members’ pay to exceed strictly set levels.

When asked if they adhered to current Department of Health salary scales, one-in-three said they did “with some exceptions”.

This is despite the fact a number of those involved have raised concerns over potentially significant funding problems in recent months that could impact on services they provide.

Further issues have been raised over patient care, with one of the HSE South organisation’s examined confirming staff working since before 2001 were not vetted, adding it was “awaiting guidance from the HSE”.

Other groups said “not all staff” working with children and vulnerable individuals were vetted in the past, but all new employees undergo Garda background checks.

Nationally, the 3,130 voluntary groups supporting the HSE and other social services receive more than €1.7bn a year, with 31 agencies receiving grants in excess of €10m.