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House of Assembly - Fifty-Fourth Parliament, First Session (54-1)
2019-11-26 Daily Xml
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Grievance Debate

McGowan, Dr C.

Mr PICTON (Kaurna) (15:08): When it comes to the state's largest department, the largest portfolio, the second highest paid chief executive, on $560,000 a year, the people of South Australia deserve somebody in that job who is going to have integrity, somebody they can trust, somebody there are not questions about. But there has been question after question over the past couple of weeks in terms of the conduct of Dr Chris McGowan, the Premier's hand-picked Chief Executive of SA Health.

Two weeks ago, we had revelations come out that, for the first two months that he was appointed Dr McGowan not only was the Chief Executive of SA Health and the department but also wore a hat as a private company sole director for Silver Chain Corporate Services Pty Ltd. He resigned from that role, backdated the resignation—a highly suspicious activity—and did not tell anybody about it. Apparently, not the Premier and not even the minister, let alone the public, knew about that happening.

We know that, while he was in that position, there were discussions with Silver Chain. There were discussions that he was involved in directly with the company. We know that there were minutes that went through his desk while he was the director, recommending a funding package worth $13 million. We asked for an independent investigation, and the Premier scoffed at that. He said that it had not reached a threshold and that the public sector commissioner would look into it. Well, it turns out that the public sector commissioner did think it had reached a threshold because she has now referred it to an independent investigator to look into, and we welcome that.

However, we have heard a lot more today. There is a lot more that has come out today in regard to the conduct of Dr Chris McGowan and Silver Chain. Earlier this year, in regard to Silver Chain, he told the Budget and Finance Committee, 'I do not involve myself in anything in that area of business.' He also said, 'Our posture is that I don't get involved in anything in that area of the business because of the perception.' Now we know what a lie that was because we know of a series of events that he has been involved in, in negotiations, in discussions with this company, that have led to a $2.9 million contract.

First of all, there was a phone call early on in his time when he was appointed chief executive on 26 June. We know this because there is a letter from the Acting Chief Executive Officer of Silver Chain to him that referenced, 'I confirm our telephone conversation today.' This letter referred to the Integrum Aged Care pilot program, which is something that Dr McGowan was involved in setting up when he was chief executive at Silver Chain. We also know that there was an email that was sent to Dr McGowan from somebody—apparently at Deloitte—that referenced text messages that Dr McGowan had, with either Deloitte or Silver Chain, about setting up a meeting to discuss opportunities between Silver Chain and SA Health. That was all while he was a director of Silver Chain at the same time.

Not only this, but now we have learned that he actually went to Perth this year—he flew to Perth on 15 February—and went out to 193 Great Eastern Highway, Belmont, which is the Silver Chain offices in that area. They have a big Silver Chain logo. You can look it up on Google Earth. His diary notes, 'Integrum Aged Care visit and meeting with [redacted]. Lunch will be provided.' He was there for 1½ hours, meeting with Silver Chain and hearing about their program—very cosy. That did not appear in his declaration that he made under proactive disclosure. There is no record of a trip to Perth that has been proactively disclosed, which is very suspicious as well.

We know that when he returned to Adelaide on 11 June he put a note on his diary on that date, saying, 'Reminder: ask Integrum for Evaluation results.' We know that Integrum is the Silver Chain program that he was involved in setting up, and let's remember that he said, 'I have nothing to do with that area of the business.' Then, on the next day, on 12 June at 8am, he had a meeting: '1:1 meeting Chief Executive DHW & CEO Wellbeing SA (no papers) Talk to Lyn about Integrum,' Integrum being the Silver Chain program. Funnily enough, two weeks after that meeting, Lyn Dean signed a contract with Silver Chain worth $2.9 million of taxpayers' money to go to that company, and the chief executive said that he had no involvement.

Here, we have the Premier defending his conduct today and saying that there was no reason for him to stand down. Dr McGowan reports directly to the Premier. People expect the Premier to take action in regard to this. There is now a cloud hanging over the biggest department in our government. At the same time, they have denied an ICAC investigation into this matter. He needs to stand down immediately and explain his conduct and his lying to the parliament.

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