At this stage, the Auditor-General is not undertaking a formal inquiry into the matters relating to the Hawkes Bay District Health Board that are currently being discussed publicly.

The Auditor-General was already aware of these issues, and is undertaking relevant work in addition to the routine annual audit process. This will include reviewing the Hawkes Bay DHB's procurement policies and practices, including how it manages conflicts of interest, as part of the 2006/07 annual audit.

The results of the annual audit will be used to decide if further inquiry is needed.

In the meantime, the Auditor-General will continue to monitor the Hawkes Bay DHB situation.