Health executive is accused over `irregular' deals

NICHOLAS TIMMINS

Public Policy Editor

A senior health service executive was yesterday accused of behaving in "a manner unacceptable in a public servant" after an inquiry into the former Yorkshire region of the NHS listed a series of improper relocation and severance payments.

Keith McLean, general manager of the region between 1991 and 1994, failed in his "duty of care" a report published yesterday by the National Audit Office said.

It was commissioned by Alan Langlands, the NHS Chief Executive, after almost pounds 450,000 in irregular relocation payments were made to four senior managers and 13 consultants.

Mr McLean received more than pounds 67,000 in salary advances, loans and a negative equity payment and the inquiry also found that he:

n Switched managers to senior manager contracts to entitle them to redundancy when the region was abolished in 1994.

n Must take overall responsibility for a "flawed" contract with a US health care company from which no benefit was received. A $150,000 (pounds 100,000) advance to the company has since been paid back.

n Authorised what seemed "excessive" hospitality budgets. n On his departure, was improperly paid almost pounds 10,000 for 29 days untaken leave. The inquiry was unable to locate his leave record.

The report adds that Mr McLean must take "some responsibility" for John Greetham, the regional chairman, being provided with a Range Rover car - since sold at a pounds 10,000 loss - when the authority had no power to do so. Mr Greetham is now chairman of the new Northern and Yorkshire region

Mr McLean was also "complacent" in allowing outside contracts worth pounds 43,000 to be let to the husband of Carol Tietjen, the director of personnel, without her declaring an interest.

Ms Tietjen is accused of "misconduct not to be condoned" over the contracts, and is criticised for signing a new contract - which took effect three days before the region was abolished - to enhance her redundancy and "maximise her own rewards".

Flawed procedures may also have cost the NHS pounds 3m over the disposal of a hospital site and at least one manager was paid for a job which did not apparently exist.

The inquiry says Mr McLean, Ms Tietjen and David Martin, the assistant regional general manager, who received just under pounds 50,000 in improper relocation payments and a car for his wife, should face disciplinary action. Mr Martin has been "severely reprimanded" and has agreed to pay back the sums owed.

Mr McLean, however, cannot be brought before a disciplinary hearing as he moved to a different NHS employer, becoming chief executive of the Trent region - a post he is leaving this month for a research fellowship at Sheffield University. The report says he was told by Mr Langlands that he would not be offered a contract from April when the regions become part of the NHS executive. Legal action to recover monies owing is being considered.

More than pounds 20,000 of Ms Tietjen's severance payment has been withheld, but she too has escaped a disciplinary hearing having become Director of Human Resources at Oxfam. She is consulting lawyers.

In mitigation, the inquiry says the improper relocation payments were made at a time of serious difficulties in the housing market and the rules have since been eased. "Nevertheless, no responsible authority should ignore the regulatory framework in which it is operating."

Mr McLean's relocation payments included an initial salary advance of pounds 21,000 when he was appointed finance director in 1989. This was larger than allowed and was "improper", the report says. It was made when Andrew Foster, now head of the Audit Commission, the NHS and local government spending watchdog, was regional general manager.

Mr Foster is not, however, criticised by the inquiry. Yesterday, he said that as chief executive in 1989 he accepted responsibility for the payment. "But I was carrying out the decision of the region and detailed implementation was carried out by the relevant authority staff."

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