A fraud investigation involving millions of pounds has commenced at the largest health board in Wales.
After auditors determined that at least £122 million was allegedly not properly accounted for, the Betsi Cadwaladr University Health Board called in specialized investigators.
In addition, Audit Wales is conducting a “high-level examination of board effectiveness” to determine what went wrong and how.
The Welsh government declined to comment on an ongoing investigation.
Earlier in the year, auditors discovered several “serious inaccuracies” in the health board’s financial report for the 2021-22 fiscal year.
They purportedly discovered £72 million in unpaid invoices and bills indicated in the records but were unable to locate evidence of their existence.
Auditors reportedly raised concerns that expenditures totaling £122 million were not properly accounted for.
Audit Wales, the Welsh financial watchdog, stated that it was still investigating whether and how the money was spent.
After auditors expressed concerns, the auditing and consulting firm EY was tasked with reviewing the books.
The NHS Counter Fraud Service Wales was asked to investigate following their report.
The NHS Counter Fraud Service is an independent organization that investigates charges of economic crime inside the NHS, such as fraud, bribery, and corruption.
None of the concerns under investigation involve personal benefit.
Audit Wales stated: “An audit of the Betsi Cadwaladr University Health Board’s accounts for 2021-22 revealed major irregularities.
“The health board was unable to present adequate audit data to substantiate the existence of £72 million in expenses incurred in the year but not paid”
“High-level evaluation”
In addition, there was insufficient evidence to prove that expenditures totaling £122 million occurred throughout the year or were properly accounted for during the correct accounting period, they said.
“Audit Wales is aware that the health board commissioned EY to conduct an external examination of the circumstances that led to the highlighted errors in response to our recommendations,” the Audit Wales spokeswoman stated.
As part of his annual program of performance audit work at the health board, Audit Wales is also conducting a high-level examination of board effectiveness.
Betsi Cadwaladr is the largest NHS organization in Wales, with over 19,000 employees and a $1.87bn yearly budget.
It is governed by a board comprised of executives – the most senior doctors, nurses, financial and personnel managers – and non-executive members, who are not medical professionals but examine and provide advice on the work of the NHS in north Wales.
Separately, the health board announced a probe into “working relationships at the level of senior leadership.
“Governance and leadership concerns have been made through the NHS Wales Raising Concerns Policy,” the health board stated in a statement.
They will be independently investigated by existing procedures and rules.
The health board acknowledged that, at the request of Audit Wales, the NHS Counter Fraud Service is conducting an inquiry.
The health board stated, “We have a duty of care to our workers, and no more remark will be made.”
Governance had previously been among the issues of concern that led to the placement of the Betsi Cadwaladr health board in special measures by the Welsh government in 2015.
It was de-escalated in November 2020 and is currently undergoing “targeted intervention.”
