Non-sanctioned payments to Senior Managers in Section 38 Agencies 2 December 2013

Minister Reilly met with the Director General of the HSE today to receive an update on the unsanctioned payments to management at organisations receiving funding under Section 38 of the 2004 Health Act.

Following the HIQA report on Tallaght Hospital in May 2012, the Minister for Health requested that the HSE conduct an internal audit of all section 38 funding recipients (hospitals and disability agencies) to ensure that similar unsanctioned payments were not being made in other locations. The HSE Internal Audit Report identified that this is a longstanding issue that has been ongoing for many years.

As has been reported extensively, a considerable number of Section 38 agencies have been found to be in breach of Government pay policy.

The Minister has requested urgent action to ensure that every agency is fully compliant with Government pay policy. The HSE has a team of senior managers following up with individual agencies.

The HSE will take whatever actions are necessary to deliver full compliance and ensure that any governance deficits identified are comprehensively rectified immediately. Meetings are now being arranged with each agency concerned.

Arising from this process, those found not to be compliant will be called in by the Director General to meet him before Christmas. Such meetings will commence next week.

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