Kalgoorlie Health Campus. Image: Louise White (Kalgoorlie Miner).
The Western Australian Opposition has called on the state’s government to explain how almost $1 billion in WA Health payments were allowed to pass through a system it described as “plagued by weak controls, inadequate documentation and failures to follow basic procurement requirements”
An Auditor General’s report released Wednesday found WA Health was not effectively managing $989.9 million in payments made outside its normal procurement system in 2024-25
In a sample of 198 transactions, auditors found 60 where there was no evidence that at least two separate people had been involved in the payment process, 33 without sufficient information to support the payment, and five authorised by officers without the required financial delegation
Almost every Health entity studied using the payment pathway ‘inappropriately’
The Auditor General also found almost every WA Health entity examined was using the direct payment pathway inappropriately, WA Shadow Health Minister Libby Mettam said
Ms Mettam said the findings raised “serious questions” about financial governance across the WA health system
“Nearly $1 billion of taxpayers’ money was being processed through a pathway the Auditor General says was not being effectively managed,” she said
“These are not minor administrative shortcomings. The Auditor General found weak controls, payments without adequate supporting evidence, failures to follow procurement rules and an environment with an elevated risk of fraud and inappropriate payments
“West Australians rightly expect every dollar in our health system to be properly accounted for, particularly when hospitals are under enormous pressure and frontline services are crying out for re
The Opposition noted report found two suppliers were paid approximately $2.5 million for the recruitment and placement of healthcare professionals despite each engagement exceeding the $500,000 open tender threshold, with no evidence of a tender, approved exemption or formal contract. It also identified a $10,000 grant payment where the health service could not demonstrate the recipient met eligibility requirements, explain how the amount was determined or produce a signed agreement.
Regional services most involved
WA Country Health Service (WACHS) was the largest user of the pathway, processing almost $613 million through it in a single year
WACHS is responsible for delivering health services across regional and remote Western Australia, including in many Indigenous communities
“This report should be particularly concerning for the Minister given the questions already raised about governance and financial practices within WACHS,” Ms Mettam said
“Before the winter break, I raised serious concerns about radiology arrangements within WACHS. Those matters were referred to the Corruption and Crime Commission, and we now have a separate Auditor General’s report identifying significant weaknesses in financial controls across WACHS.”
In January, National Indigenous Times reported on concerns over Kalgoorlie Health Campus’s apparent resistance to referring patients to other services which can provide urgent radiology services and CT scans on short notice, despite those services being covered by Medicare. The Health Campus, Kalgoorlie’s public hospital, serves the state’s Goldfields region
Patients requiring an urgent CT scan could include those suspected of having had a stroke, or suffering from lung clots – both conditions which disproportionately affect Indigenous patients in the Goldfields
Spartan First Imaging CEO Des Headland told National Indigenous Times at the time the situation was “incredibly disheartening”
“For an Indigenous-led medical imaging service built to improve access in the Goldfields, it’s incredibly disheartening that we’re not being engaged to help when patients are waiting weeks or being flown out of town,” he said
Recommendations must be ‘implemented in full, not simply noted and filed away’
On Wednesday, Ms Mettam said the WA Health Minister “cannot dismiss almost $1 billion as insignificant simply because the Department says it represents about 16 per cent of non-salary health expenditure”
Ms Mettam said it was important to recognise the Auditor General had not identified fraud, but the report stated its Forensic Audit team was continuing to work with the Department of Health on several matters
“The Minister should immediately explain whether she has been briefed on those outstanding matters and, to the extent she is able, what concerns remain under examination,” she said
“There is also a legitimate question about why the Department has merely ‘acknowledged’ the two recommendations directed specifically to it rather than clearly accepting them
“West Australians deserve to know that those recommendations will be implemented in full, not simply noted and filed away.”
WA Health ‘accepts all of the recommendations’ – Minister
Minister Hammat told National Indigenous Times she welcomed the Auditor General’s report and “WA Health’s acceptance of all the recommendations put forward”
“It’s reassuring that there was no evidence of fraud or malfeasance discovered in the process of this thorough audit,” she said
“It’s important we maintain strong financial management, and opportunities to strengthen controls and improve oversight have already been actioned
“Balancing strong financial controls with an empathetic and patient-focused approach that meets public expectations when people lose or misplace belongings is complex and not necessarily one-size-fits-all
“It’s important that we have an approach that prioritises compassion and common sense.”
