Hospital ‘deceit’ highlights misconduct risk: CCC

An incident where a public hospital employee allegedly exploited loopholes to obtain more than $280,000 has led the Corruption and Crime Commission to call for possible criminal prosecution.

The CCC today tabled two reports, both of which resulted in opinions of serious misconduct against former staff at Sir Charles Gairdner Hospital and Murdoch University – the former of which resulted in a recommendation of criminal prosecution.

A senior biomedical engineer at Sir Charles Gairdner Hospital, Suresh Kumar, is alleged to have abused the trust of his supervisors by awarding contracts to a business registered to his wife – Metaphor Medtronix Solutions (MMS) – for the sole purpose of gaining financial benefit.

Mr Kumar was responsible for maintenance of important medical equipment, and over more than a year allegedly used the system to gain financial benefit to the tune of $281,000.

The CCC said Mr Kumar exploited a loophole in the hospital’s electronic database by adding the MMS as a hospital supplier, then issuing it requests for quotes.

Mr Kumar, through MMS, would then issue purchase orders – approved by hospital supervisors – before invoicing for repairs not done and parts not procured.

Flaws were identified in the process which allowed Mr Kumar to add the company to the hospital supplier database, and the process of purchase order approvals.

The CCC formed an opinion of serious misconduct by Mr Kumar and recommended that criminal prosecution be considered.

“No one ever checked the provenance of this new business, despite the fact that it was operating in a very specialised area with only a very limited number of reputable suppliers,” Corruption and Crime commissioner John McKechnie said.

“It was a perfect circle of deceit.

“The devious behaviour took advantage of two significant misconduct risks – that anyone authorised can add suppliers to the database without proper checks that should apply to procurement processes; and the inadequacy of the approval process for requisitions.”

Mr McKechnie said the incident highlighted the importance of proper process in the public sector, even when employees are trusted.

“Following process protects everyone including taxpayers,” he said.

Mr Kumar’s employment was terminated in November last year.

The CCC also outlined its opinion of serious misconduct against former Murdoch University manager of facilities and maintenance Dario Pacifici.

Mr Pacifici, who’s role included contractor engagement, is alleged to have introduced a business registered in the name of his wife and a friend to the university.

The CCC found Mr Pacifici was active in setting up and managing the business, BM OnDemand, which was awarded more than $1 million worth of work by the university.

He was found not to have disclosed his involvement, and the commission took the view that he took steps to conceal his connection in instructions given to BM OnDemand’s accountant around contact email addresses.

BM OnDemand was engaged by the university to run a workshop on the Murdoch campus through a licensing agreement.

Mr Pacifici was also alleged to have organised a waiver which allowed BM OnDemand to be awarded a contract worth an estimated $900,000 over two years, without having to go to tender.

The CCC said while conflicts of interest did not constitute misconduct, taking advantage of employment to obtain a benefit did.

Murdoch terminated Mr Pacifici’s employment in September 2022.