There are interesting posts on the detail of the Baygate scandal, and the clearly close relationship between the DHB's CEO and Hausmann on Craig Foss MP's blog. We found this post on a $200k plus contract to Welcare interesting. Note the answers on tendering.
Here is the commentary from Craig Foss on this from another post
This contract and the processes that led to it were slammed by Audit New Zealand.Wellcare is a subsidiary of Healthcare New Zealand.This program was set up to train people who were on a benefit for a job in the community care sector. It was very expensive and out or 16 or so who started training, I understand 4 went on to work. EIT (HB) already provided a NZQA approved course in this field as did at least one other local provider but neither were asked to tender.In April 2006, the CEO claimed to the board that it was tendered , and yet a month later after questioning, as you will see from the DHB minutes linked above, the CEO and a Government appointed board member told the board, it had not been tendered.The reasons I understand were along the lines that no other provider could provide a full wrap around service as Wellcare could.Now what on earth does that mean?