Core Cases

Hawke's Bay DHB Governance Failure

Investigation document: Hawke's Bay DHB Governance Failure

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RESEARCH 33: HAWKE'S BAY DHB GOVERNANCE FAILURE (2008)

Date: December 29, 2025 (UTC) Capture IP: 207.49.133.146 Objective: Document governance failures in Hawke's Bay public institutions

CRITICAL FINDING: BOARD SACKED FOR CONFLICTS OF INTEREST

Source: Beehive.govt.nz (Official NZ Government Website) URL: https://www.beehive.govt.nz/release/former-board-failed-basic-tests-good-governance Date: March 18, 2008 Minister: David Cunliffe (Health)

THE SCANDAL

What Happened

The entire Hawke's Bay District Health Board was sacked and replaced with a Commissioner due to widespread governance failures and conflicts of interest.

Key Findings from Independent Report

> "The report takes a holistic view of the deeply ingrained and widespread governance issues at Hawke's Bay DHB." > "There was widespread failure by the Board to manage conflicts of interest." > "This report is effectively a guide on how not to operate as a Board."

KEY PLAYERS NAMED

Peter Dunkerly

> "Mr Dunkerly inadequately declared and managed his conflicts of interest with respect to pharmacy contacts in which he had an interest. The Board also failed to manage this situation with the degree of care that should be expected when dealing with millions of dollars of the public's money."

Mr Hausmann

> "The report also found Mr Hausmann could have better managed his conflicts of interest with respect to Wellcare and Community Services."

Mr Atkinson (Former Chair)

> "The former Chair Mr Atkinson could have also managed these better given that he knew in 2004 Mr Hausmann was involved in the proposal for community services but did not disclose that to the then Board nor did Mr Atkinson adequately manage any subsequent conflicts as they arose."

GOVERNMENT RESPONSE

Actions Taken

Board replaced with a Commissioner
Independent report commissioned
Legal threats from former board members to prevent publication
Injunction attempted by former members

Minister's Statement

> "Had I not replaced the Board with a Commissioner we would not be reading this report today because of an injunction preventing publication taken by its former members."

SIGNIFICANCE FOR INVESTIGATION

Pattern of Governance Failure in Hawke's Bay

This scandal demonstrates a documented pattern of governance abuse in Hawke's Bay public institutions:

| Year | Institution | Issue |

|------|-------------|-------|

The Pattern

Conflicts of interest not properly managed
Self-dealing by board members/trustees
Public money misused
Legal threats to prevent accountability
Government intervention required
Same region - Hawke's Bay

Connection to Investigation Network

While no direct connection to Langley Twigg or Oldershaw has been established in this case, the scandal demonstrates:

Healthcare sector governance failures (connects to PAMT, Royston Hospital)
Same region where the professional network operates
Same pattern of conflicts of interest
"Deeply ingrained" governance issues in the region

EVIDENCE CAPTURED

| Item | File |

|------|------|

| Screenshot | SCREENSHOTS/33_HBDHB_SCANDAL.webp |

| Source URL | https://www.beehive.govt.nz/release/former-board-failed-basic-tests-good-governance |

| Related Document | Hawkes Bay DHB report (1.83 MB) - available on Ministry of Health website |