Betsi Cadwaladr health board: £122m fraud probe launched

A multi-million pound fraud investigation has begun at Wales' largest health board.

Specialist investigators have been called in to Betsi Cadwaladr University Health Board after auditors discovered at least £122m was allegedly not properly accounted for.

Audit Wales is also conducting a "high level review of board effectiveness" to understand what went wrong and how.

The Welsh government said it was unable to comment on an active investigation.

Issues were first uncovered earlier in the year when auditors found a number of "significant errors" in the health board's account for the 2021-22 financial year.

They allegedly found there was £72m of unpaid invoices and bills listed in the accounts, but could not find evidence that they existed.

Overall, auditors are said to have raised concerns that £122m of expenditure was not properly accounted for.

The Welsh financial watchdog, Audit Wales, said it was still investigating to work out whether and how the money was spent.

Accountancy and consulting firm EY were commissioned to review the accounts after auditors raised concerns.

Following their report, the NHS Counter Fraud Service Wales was asked to investigate.

The NHS Counter Fraud Service is an independent body which looks into allegations which can include economic crime in the NHS, including fraud, bribery and corruption.

BBC Wales understands none of the issues being investigated involve anyone making personal gain.

Audit Wales said: "The audit of the Betsi Cadwaladr University Health Board's 2021-22 accounts identified significant errors.

"The health board was unable to provide sufficient audit evidence to demonstrate the existence of £72m of expenses incurred, but not paid in the year."

They added there was also insufficient evidence to confirm that expenditure of £122m occurred in the year or was properly accounted for in the correct accounting period.

"Audit Wales is aware that in response to our recommendations, the health board commissioned EY to undertake an external review of the circumstances that led to the errors identified," the Audit Wales spokesperson continued.

"Audit Wales is also currently undertaking a high-level review of board effectiveness as part of his annual programme of performance audit work at the health board."

Betsi Cadwaladr is the largest NHS organisation is Wales, employing more than 19,000 staff and with an annual budget of £1.87bn.

It is run by a board including executives - the most senior doctors, nurses, finance and personnel managers - and non-executive members, who are people who are not medical professionals, but who scrutinise and advise on the work of the NHS in north Wales.

Separately, the health board confirmed an investigation was also taking place into "working relationships at a senior leadership level".

"Concerns have been raised through the NHS Wales Raising Concerns Policy about governance and leadership," the health board said in a statement.

"They will be investigated independently in line with existing procedures and policies."

The health board confirmed that the NHS Counter Fraud Service is carrying out an investigation on the request of Audit Wales.

"We have a duty of care to our staff and no further comment will be made," the health board added.

Governance had previously been among the areas of concern which led, in 2015, to Betsi Cadwaladr health board being put in special measures, the Welsh government's highest level of oversight.

In November 2020, it was de-escalated and is currently under "targeted intervention".

Plaid Cymru's health spokesperson, Rhun ap Iorwerth MS, questioned whether it was possible to turn the health board around.

He said: "I am of a firm belief now that the best thing for patients and the best thing for hard-working staff is to scrap this health board and start again."