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Healthway Legal Issues

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This article reports about the Western Australia government agency Healthway’s misuse of public funds, leading to the Corruption and Crime Commission delving deeper into the agencies affairs and increasing the spectre of charges against directors, board members and senior staff.

Criminal Law

Healthway’s directors, board members and senior staff members may face criminal charges for breaching their duties and codes of conduct, as the CCC’s investigation into the agencies affairs intensifies. Allegedly according to a Public Sector Commission report, Healthway grossly misused public funds in the procurement of thousands of tickets worth hundreds of thousand dollars, which in turn flawed to board members, senior staff and directors’ family …show more content…
For example the directors would have been employed under contracts with Healthway. Incorporated organisations also have sponsorship contracts with Healthway. In exchange for funds, grants and the promise of positive return on their investment through sports and various healthy initiatives, Healthway agrees to grant money to incorporated companies. The sponsorship obligations including rights and obligations are included in the contract.
This article quotes that David Malone, a former Healthway executive director is claimed to have left the organisation with a $226 000 pay out with the pay-out forbidding both parties from commenting adversely about each other. Any pay-out to parties to their contract relates to contract law.

Administrative Law

Administrative law defines the extent of powers and responsibilities held by administrative agencies of Australian governments. Of special importance are the powers granted to administrative agencies, the substantive rules that such agencies make, and the legal relationships between such agencies, other government bodies, and the public at …show more content…
One example from the article is former Healthway executive director David Malone’s contract. The article states that Mr Malone had 3 and a half years to go on his contract with Healthway. The contract holds Mr Malone accountable for Healthway’s operations as he’s the executive director. After the allegations of mismanagement of public funds surrounding the agency, Mr Malone resigned and was rewarded $226 000 pay out as his contractual conditions permitted, the deed also forbids both parties against commenting about each other.
This article is an intriguing case in that while such a contact provides a quota of confidence for future directors and the public as it shows that once under contract, a party must fulfil the agreement or be held accountable for any damages caused, however it also highlights the element of danger associated with contractual terms and pay out agreements as Mr Malone was paid out although through public eyes didn’t fulfil his contract.

• Encourages and discourages certain

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