The chair of an Aboriginal health service covering Coonamble, Gilgandra and Dubbo says they did not use government funding for overseas trips following a weekend article in the Sydney Morning Herald (SMH) questioning the charity’s travel expenses.

The Sydney paper reported on 24 May that Coonamble Aboriginal Health Service (CAHS) CEO Phil Naden and senior board members used the registered charity's funds for trips to India, Canada, New Zealand and the NRL opening round in Las Vegas.

CAHS is a non-profit entity and receives over two thirds (at least $10 million) of its funding from the federal and state governments.

As well as medical and dental clinics in Coonamble, where it also operates a funeral service and a gym, CAHS has health clinics in Gilgandra and Dubbo.

The article does not claim government funds were used for travel expenses.

However, it raised concerns from former staff at the Dubbo Aboriginal Medical Service, who see the expenses as non-justified and say they could have gone towards clinical services.

CAHS Chair Brendon Harris. SOURCE: X

CAHS chair Brendon Harris responded to questions from The Coonamble Times.

"Travel and vehicle expenses have increased in line with the significant growth and complexity of CAHS’ operations and we now service over 40 per cent of the West and Far West of NSW," Mr Harris said.

"Since 2012/13, the number of contracts serviced has grown from 3 to 32.

"This operational expansion across Dubbo, Gilgandra and other areas has required increased travel to meet clinical and managerial responsibilities."

He says all travel is assessed against "strict internal policies with appropriate Board oversight" and that all funds are subject to external oversight.

"All government grants are subject to the strictest probity and all of CAHS’ accounts have been signed off by an independent auditor.

"International trips are rare and only undertaken when there’s a clear business case and Board approval."

Federal Government investigates

A spokesperson for the Australian Department of Health, Disability and Ageing confirmed they are investigating the matters raised in the article and will brief Health Minister Mark Butler.

The department also says there's no indication that expenses reported by the SMH were paid with department funds. 

"The department is reviewing current departmental grant funding to confirm it had been used in accordance with relevant grant guidelines," a department spokesperson said.

"Grants are administered under the Commonwealth Standard Grant Agreements.

"Each ACCHO (Aboriginal community-controlled health organisation) grant agreement includes regular reports on expenditure, deliverables and compliance."

A spokesperson for NSW Health said they "closely monitor" services' activities with "a schedule of regular program and financial reporting and face to face engagement."

"NSW Health provides funding to CTG Aboriginal Health Services to deliver healthcare programs for Aboriginal communities in Coonamble, Dubbo and Gilgandra," the NSW Health spokesperson said.

"These funds are accounted for in financial statements which show no evidence of excessive travel or vehicle expenses associated with these programs."

CGT Aboriginal Health Services is a business name registered under CAHS.

Coonamble mayor Dan Keady said he has reached out to his counterparts in Gilgandra and Dubbo, as well as Barwon MP Roy Bulter, over the matter.

"While it is concerning for the future operations of CAHS, at this stage nothing has been substantiated," Cr Keady said.

"All three shires need a strong, well-funded Aboriginal health service, and we will be working closely to ensure that remains the case."

Gilgandra Mayor, Doug Batten

Gilgandra mayor Doug Batten also expressed concern and said he has spoken to Labor Duty MLC for Barwon, Stephen Lawrence.

"Everyone in town has read that SMH article," Cr Batten said.

"I look forward to the results of any new investigation."

No confidence letter

The SMH article also referred to a letter by current and former Dubbo employees outlining a vote of no confidence in Mr Naden and the board, dated 19 August 2024.

The letter said there were "significant concerns regarding the leadership and management practices" at their clinic and alleged the board barred GPs from prescribing MS-2 Step abortion medication.

Staff also alleged Mr Naden's son, who works at the service, inappropriately accessed a colleague's medical records for information on a recent hospital presentation.

Mr Naden came on as CAHS CEO in 2019.

Mr Harris said the board dealt with the no confidence letter with "appropriate action" and still supports their CEO.

"CAHS supports access to reproductive healthcare. At no point have we taken an ideological stance against it," Mr Harris said.

"In the (inappropriate record access) case mentioned, the CEO declared a conflict and stepped aside.

"The matter was handled externally by the appropriate regulatory body, the Health Care Complaints

Commission.

"We have strict protocols in place around privacy and confidentiality, and we take those responsibilities seriously."

Mr Harris also told the SMH that Aboriginal and Torres Strait Islander Health Practice Council referred Mr Naden's son to counselling.