Health NZ launches review of conflict of interest concerns, after Stuff investigation
Thursday, 13 March 2025
Health Minister Simeon Brown and the interim chief executive of Health NZ have ordered a review into the process that led to the awarding of a controversial $2m contract at the centre of conflict of interest concerns.
MBI Healthcare was co-founded by John Bennett in 2012. He resigned as a director in 2020 but remains in business in two other companies with another MBI Health co-founder.
When the $2m contract was awarded in 2023, Bennett was an advisor to Health NZ and had been since at least 2022.
Health NZ initially justified MBI winning the contract by saying it was “the only known provider with the essential skills and expertise necessary to deliver the specific services needed at that time.”
Health New Zealand/Te Whatu Ora will review the procurement process of a controversial $2m contract at the centre of conflict of interest concerns.
In a statement on Thursday, interim chief human resources officer Fiona McCarthy said Health NZ’s interim chief executive has instructed the review be undertaken into the process that led to MBI Healthcare Technologies being awarded the contract in April 2023.
Health Minister Simeon Brown has also asked for a review.
“My priority is ensuring that all New Zealanders have access to timely, quality healthcare,” he said in a statement.
“That means ensuring that Health New Zealand prioritises value for money for every dollar of taxpayers’ money spent. I have asked Health New Zealand to review this matter to ensure all procurement processes were followed.”
MBI Health is linked to embattled senior government manager John Bennett, who co-founded the company in 2012 with Barry Mulholland and a third party.
Bennett resigned as a director in 2020 but remains a director in two other companies with Mulholland, leading to conflict of interest concerns.
When the contract was awarded, Bennett was an advisor to Health NZ and had been since at least 2022.
In September 2024 he was employed in a senior management role at ACC and this year has been on secondment back to Health NZ.
Health NZ initially responded to the conflict of interest concerns by saying “John Bennett has advised us that he has no conflicts of interest in relation to his secondment to Health NZ”.
“He is not involved in any Health NZ commercial bids or procurement and does not hold any financial or decision-making delegation in the role he has been seconded to.”
In response to further Stuff questions, Health NZ interim chief human resources officer Fiona McCarthy said the contract had not been advertised.
“The engagement of MBI was exempt from the open advertising requirements in our procurement processes as it was the only known provider with the essential skills and expertise necessary to deliver the specific services needed at that time.”
That prompted contempt from New Zealand health consultancy businesses who labelled the assessment “complete rubbish”.
“There are a number of organisations who could have provided it, along with at least a dozen individuals,” said one industry insider.
Announcing the developments, Health NZ said it was committed to undertaking a thorough review of the procurement process.
“We are working at pace and hope to have it completed shortly.”
Last Friday, Bennett was stood down by ACC and is subject to an investigation, after a series of Stuff stories reported concerns about his conduct.
Those concerns included physical contact with co-workers and appearing shirtless in a work video call, which Bennett defended as, “So, yeah, it's hugging staff members and someone putting a camera on me while I was sat there at nine o’clock in the morning in the hot weather in Auckland.”