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Politics

NT signs $1 million deal with KPMG to address health budget woes

The NT Health Department had a $11m deficit in the 2017-18 financial year.

Public documents show the Northern Territory Government has proceeded with a select and tender process for a contract worth $1 million to address spending problems in the Health Department.

By using a select and tender process the Government selected a winner without going through a public and competitive tender process.

The move comes at a time when the Territory's Health Department revealed in an annual report it operated at an $11 million deficit in the 2017-18 financial year.

Its budget is $1.7 billion.

The $1 million tender was awarded to professional services firm, KPMG in July.

In a statement, the Health Department said the reform program, known as the Return to Budget strategy, was aimed at improving the efficiency and effectiveness of its service delivery, including the National Disability Insurance Scheme.

The department also said the $1 million figure awarded to KPMG was an "upper limit" and so far $332,000 had been spent.

"KPMG was engaged by the Department of Treasury and Finance to assist with independent expert financial advice, as a firm with extensive experience in developing similar health services reform programs in other jurisdictions," it said in a statement.

The Northern Territory's deputy opposition leader, Lia Finochiarro said the Government must explain why budget repairs were not being done internally and were instead costing taxpayers.

"The Department of Health is the Territory's largest agency with a $1.5 billion budget," she said.

"[Deputy Chief Minister and Treasurer Nicole Manison] must justify to Territorians why a $1 million contract was awarded externally and why a budget strategy could not have been developed within Government".

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