11 Feb 2010

Otago DHB fraudster sentenced for taking kickbacks

6:19 pm on 11 February 2010

Convicted fraudster and former Otago District Health Board IT manager Michael Swann has been sentenced for accepting kickbacks during his time at the DHB.

Swann is serving a nine-and-a-half-year jail term for defrauding the board of $16.9 million between 2000 and 2006 with Queenstown surveyor Kerry Harford.

Swann accepted $755,000 worth of kickbacks from his friend, Dunedin businessman Robin Sew Hoy, between 2000 and 2006.

Sew Hoy paid Swann the money in exchange for IT contracts at the board, worth more than $4 million.

At the High Court in Dunedin on Thursday, Justice Chisholm sentenced Swann to 20 months' imprisonment, to be served concurrently with fraud sentence.

Sew Hoy is serving a sentence of 10 months' home detention after admitting that he paid Swann to secure the contracts.

Harford is serving a jail term of three years and four months for his part in the fraud.