Betsi Cadwaladr: North Wales NHS report 'found accounts falsified'

An unreleased report into the finances of the north Wales Betsi Cadwaladr health board found that accounts were "deliberately falsified", Plaid Cymru leader Adam Price has claimed.

He told the Senedd the report alleged millions were "posted wrongly" to avoid losing them by the end of the financial year.

Mr Price told the Senedd the report suggested a form of fraud.

A fraud investigation was dropped earlier in the year.

First Minister Mark Drakeford said he understands disciplinary procedures are being instigated by the health board.

"Actions flowing from the report are still very possible," he said.

He said there was no evidence found that Welsh government civil servants or ministers were complicit.

The probe came after auditors discovered at least £122m was allegedly not properly accounted for.

The heath board said in April there would be an internal review of the matter, "in line with its procedures and policies".

The comments from Adam Price come as he faces pressure over a report alleging harassment, bullying and misogyny in Plaid Cymru.

Last week a committee heard former independent members of Betsi Cadwaladr health board were "flabbergasted" that NHS Counter Fraud Wales had dropped their investigation.

BBC Wales was told last year that none of the issues that were investigated involved anyone making personal gain.

Speaking at First Minister's Questions in the Welsh Parliament, Mr Price appeared to read out findings from an unpublished report by accountancy company EY, which had led to the fraud probe.

The Plaid Cymru leader said the report "concluded that BCUHB financial accounts were deliberately falsified, with millions of pounds of expenditure posted wrongly in 2021-22 in order to avoid losing those funds at year end".

He continued: "The report says, 'We have found that costs were posted to the incorrect financial year, and that the statements were deliberate and the misstatements were not limited to a single individual or team.'"

The party leader asked: "Since this, by definition almost, seems to suggest corporate financial misreporting fraud, why is the NHS's own fraud investigation team concluding that no further action should be taken?"

Responding, the first minister said it was not for him "to explain why NHS counter-fraud have come to the conclusions that they have; they're an entirely independent organisation. The report was sent to them.

"My understanding is that they investigated it. Their conclusion is that there were no criminal charges that needed to be brought. That's the extent of their involvement."

Disciplinary procedures "have been instigated by the health board", he said, adding that actions flowing from the report "are still very possible".

Mr Price further alleged the report documented "financial misreporting fraud in relation to a named service provider, involving a seven figure sum being deliberately attributed to the wrong financial year".

He said a "purchase order was produced on 31 March 2022 with incorrect details, which were intentionally designed so that it would not be sent to the company".

Mr Price said the purchase order was drafted by a member of the separate NHS procurement services team, a division of NHS Wales Shared Services Partnership which NHS Counter Fraud Wales is also part of.

He alleged a conflict of interest and asked Mr Drakeford how it would have been managed.

Mr Drakeford said he had not seen the document himself, but said the report was not critical "in any way of Welsh government ministers or civil servants", and did not find any evidence or suggestion of complicity.

He said the reason it cannot be published is that it would "inevitably… lead to identification of individuals, who… are now potentially subject to disciplinary procedures".

"It would be utterly unfair to them in any response that they would wish to make to have that report circulated".

Mr Drakeford said he hoped nothing that Mr Price said would "prejudice actions that the board might wish to take".

Mr Price added he was careful not to name any individuals.

"I am simply raising legitimate questions," he said.

The health board declined to comment.