Mar 25, 2008

BAYGATE : Governance Turned On Its Head

Several aspects of the Baygate scandal require further scrutiny. One that we find particularly strange is the notion that that the Board had lost the confidence of the CEO. Isn't something wrong here? Isn't it supposed to be the Board's confidence that matters? Since when do CEO's call the shots and control their boards (actually at local government and DHB level this seems quite common, but it is not supposed to be the case).

Our view is that there is far too much steering and control of DHBs and local councils by the CEOs they are employing. This is the natural result of having boards elected by the public without concern for the skill set of those being elected. Too often the Councils are not really equipped to govern. And CEOs too often take advantage of this.

While we are concerned about what has gone on in Hawkes Bay we are increasingly seeing system wide problems. It is looking increasingly necessary to look at a complete reform of the DHB model.