HSE does not have adequate resources or systems to monitor Section 38 and 39 agencies – Mitchell O’Connor

Fine Gael Dun Laoghaire TD and member of the Joint Oireachtas Committee on Health and Children, Mary Mitchell O’ Connor, today (Tuesday), speaking at the Health Committee hearing on the HSE Section 38 and 39 report, questioned HSE Deputy Director General, Laverne McGuinness on the HSE’s capability to monitor Section 38 and 39 agencies.

“ It is a huge task for the HSE to audit these organisations and to ensure that tax payers’ money is allocated wisely. Today I questioned Laverne McGuinness, HSE Deputy Director General about the competence of the HSE and its ability to monitor section 38/39 organisations when the HSE itself is fragmented.

“I find it extraordinary that ten years after the HSE was set up, financial systems are still not integrated, eleven or more financial management systems remain in place. How could the HSE possibly monitor what is going on in the Section 38 and 39 organisations when it is so fragmented in terms of financial   management systems? An integrated system is badly needed.

“When asked if she has confidence in the HSE’s ability to monitor Section 38 and 39 agencies, Laverne McGuinness admitted that the current system of operation is lacking and that new procedures are needed.

“There are also issues around the number of qualified accountants, auditors and financial controllers employed by the HSE, are staff resources available to do this properly?

“We need to know why very generous pay practices are only coming to light now. Were there whistle-blowers trying to attract attention? Was this brought to the attention of HSE senior management?

“The HSE funds over 1,900 Voluntary Agencies to a value of approximately €3.1 billion. Forty-four of these agencies, accounting for €2.5 billion are funded under Section 38 of the Health Act, while the remaining agencies of which there are more than 1,800 are part-funded under Section 39 of the Health Act.

“I appreciate the very important work carried out by Section 38 and 39 organisations, but it is essential that we ensure that these bodies are managed in a way that benefits the service users and the tax payer. I am not confident that the HSE has the means to carry out this function and the Deputy Director General failed to reassure me at today’s Health Committee meeting.”