Treasury report notes management concerns at Waikato DHB

Capital and Coast DHB, which runs Wellington Hospital has been given a C Investment Confidence Rating by Treasury. Photo: Lynn Grieveson.

Treasury has released the latest round of Investment Confidence Ratings (ICR) today, showing the Waikato and Capital & Coast district health boards still have work to do before gaining the top investment grade.

A report released with the ratings noted management concerns at the Waikato DHB.

Waikato DHB and Capital & Coast DHB each received C ratings, while Otakaro Ltd, which delivers anchor projects for the Christchurch rebuild, received an A rating.

The ICR is a tool developed by Treasury to assess how well investment-intensive government agencies are managing their investments and assets. Agencies receive an A to E rating, and those with lower ratings have less delegated autonomy over their investment decisions. It has been in use since 2015.

The C rating for the two DHBs means that investment management systems will remain in place. Both DHBs have improvement programmes underway to improve to a B minimum rating over time.

The report noted management concerns at Waikato DHB, saying it needed to improve project management capability and consistency, and lift “organisational change management capability”.

The DHB's management was mired in controversy earlier this year after an inquiry into former chief executive Dr Nigel Murray's spending found it to be excessive, adding it raised serious concerns over his character.