Concerns raised as fraud probe into north Wales health board dropped

Investigators concluded in April that no further action was needed after auditors discovered £122m was not properly accounted for.

The probe into the accounts came following a report from accountancy firm Ernst and Young (EY), which has yet to be made public. 

NHS Counter Fraud Wales dropped the investigation into Betsi Cadwaldr Health Board last month. 

In a Senedd committee meeting on Wednesday (May 3) John Gallanders and John Cunliffe told members they were "flabbergasted" to find out the probe had been dropped. 

The pair, who were former independent members of Betsi Cadwaladr University Health Board, spoke out for the first time, since they were forced to resign by Health Minister Eluned Morgan.

Mr Gallanders told the Senedd Public Accounts and Public Administration Committee that independent members that had brought in EY to review Betsi's finances.

John Gallanders (bottom left) and John Cunliffe (bottom right) gave evidence at the committee meeting on Wednesday. (Image: Senedd.)

He added: "As independent members we were absolutely flabbergasted at that statement (of) no further action from NHS counter fraud, when items within the Ernst and Young report quite clearly shows a range of financial irregularities of a significant amount not just within Betsi but potentially reached into other departments across the NHS in Wales, other health boards and in fact straight into the Welsh government itself".

Mr Cunliffe added: "I think the EY report is something that should be released. The counter-fraud investigation and the fact that's not being pursued needs to be examined, because that feels uncomfortable, given what we knew and where we were.

"My understanding is that there is a potential issue for fraudulent activity. But without the detail of that, and without the counter fraud investigation, that it is difficult to judge how far that goes."

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After Betsi Cadwaladr Health Board were put back into special measures, following a damning report, the Health Minister asked board members to resign from their roles. 

Mr Cunliffe said independent members had been "summoned" to a meeting with the minister at Welsh government offices in Llandudno Junction "without any understanding of why we were there".

He added: "We were put in a position of having to resign or be fired without any understanding of why. Despite numerous attempts to try and get an understanding of what evidence the Minister was relying on, nothing was provided."

He also said that a collective decision was made to resign in order to avoid 'detrimental' impacts on the careers of other members.

Eluned Morgan

Mr Gallanders said: "It was clearly not going to be a discussion. It was made absolutely clear that if we didn't resign, we would actually be dismissed.

"So, we were almost, effectively, forced into the corner of actually doing that."

He added that members had expected 'some form of discussion', but that never came and following Ms Morgan's presentation, an official came in six minutes before she returned, providing a draft of a dismissal letter "covering the dismissal points".

A Welsh Government spokesperson said: “The Minister for Health and Social Services accepted the resignation of the independent members of the Betsi Cadwaladr University Health Board following a meeting she had with them on the 28 February 2023. At this meeting, the Minister shared with them the concerns she had relating to health board governance, leadership and culture.”

NHS Wales Counter Fraud said they had nothing to say on the matter. 

Betsi Cadwaldr Health Board declined to comment.