Health Ministry $3 million payout bungle
National Party Associate Health spokesman Dr Jonathan Coleman says a Ministry of Health bungle could cost taxpayers more
than $3 million in extra compensation payments.
He is commenting on a Wellington District Court judgement awarding an additional $35,000 compensation to a former
patient at Lake Alice Psychiatric Hospital.
"Judge Broadmore has ruled that the Ministry of Health was in breach to withhold $35,000 of compensation payable to
former patient Paul Zentveld.
"This judgement has implications for the other 87 second round claimants in the Lake Alice case. These claimants all had
an average of 30% sliced off their compensation payments by the Ministry.
“Although the individual settlements were confidential, it seems probable that $35,000 is a likely figure that each of
the claimants is due. The Ministry of Health now faces having to meet this obligation for the other 87 claimants.
"The Lake Alice affair was an abject disgrace, and this $3 million bungle by the Ministry of Health is the final
insult."
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