The man appointed as Queensland Health's acting director-general remains under internal investigation into "suspected corrupt conduct" over a taxpayer-funded defamation lawsuit against a former mental health patient.
The ABC can reveal Shaun Drummond was still subject to an internal investigation when Health Minister Yvette D'Ath announced earlier this month he would act in the top job from March 14.
The probe, which involves multiple Metro North employees, includes an allegation Mr Drummond "improperly" used public funds in relation to the private defamation action launched by four psychiatrists against a disability pensioner over a blog post in 2018.
Last year, the ABC revealed Metro North had bankrolled the legal claim, without seeking the approval of the then attorney-general, Ms D'Ath, as required by government indemnity guidelines.
Former Metro North lawyer, turned whistle-blower, Alex Stewart has alleged Mr Drummond — as the Metro North chief executive — signed off on the use of public funds in the lawsuit.
A copy of an invoice seen by the ABC showed the psychiatrists' barrister billed Metro North just over $7,000 for work on the case over two years before they decided to no longer pursue it.
An ongoing investigation
Metro North has engaged an outside law firm to conduct the probe, which involves some complaints that have been assessed as "suspected corrupt conduct, if proven".
The investigation remains underway with a report set to be finalised by the end of May, which will then be considered by a decision-maker in June.
The ABC does not suggest Mr Drummond has engaged in any improper conduct, only that a complaint alleging that he approved funding of a defamation action contrary to government indemnity guidelines is being investigated by the department.
Mr Drummond was chief executive of Metro North for more than three years before he left in July last year to become a partner with consulting firm Deloitte.
In January, he took up the newly created position of Queensland Health's chief operating officer, before being appointed acting director-general following John Wakefield's announcement this month he would finish in the role on July 1, with Mr Drummond taking over while he was on leave.
Directors-general are the highest raking bureaucrats in government departments and report directly to ministers.
John Greig, the managing partner of Deloitte in Queensland, confirmed Mr Drummond has taken a leave of absence of up to 12 months to fulfil the new role.
Mr Stewart has questioned the appointment, given the ongoing investigation.
"I'm just bemused that the minister would directly appoint someone, despite them being subject to several ethics and integrity complaints," he said.
"As far as I know, nothing's been finalised."
He wants the matter resolved as quickly as possible, he said.
"Three and a half years to resolve a fairly simple moving of money [matter] certainly raises my eyebrows," he said.
'It was deemed he was suitable'
During question time in state parliament on Tuesday, shadow minister for integrity Fiona Simpson asked Health Minister Yvette D'Ath why Mr Drummond was appointed to the position given the ongoing internal investigation.
Ms D'Ath said she was aware of the complaint made a number of years ago and that there have not been "any adverse findings at this point from any investigation".
"I'm also aware that at the time there was a decision that it was deemed appropriate that Shaun Drummond continue to be the chief executive of Metro North HHS, the largest HHS in this state, and it was seen based on the circumstances of the complaint," Ms D'Ath said.
"As such, I think it's more than appropriate he be fit to fulfil the role of acting chief operating officer, and now acting director-general.
"If at some point in the future there is a finding that is adverse against the individual, then I will deal with those findings at that time.
"But at this point, there is no finding of such against him and it was deemed that he was suitable to fulfil that role as chief executive at that point, and he's certainly suitable to fulfil the role of acting [director general] now."
Later, Shadow Minister for Health Ros Bates told parliament: "The Opposition believes that until these allegations have been appropriately investigated and then dismissed, it isn't proper for Mr Drummond to act as the Director-General."
'I have sought advice from the Integrity Commissioner'
In a statement, Mr Drummond said he "cannot comment on these allegations as the investigation is ongoing".
"I am on a leave of absence from Deloitte and am focused on my role as acting director-general of Queensland Health," he said.
He said no former or current Deloitte employee was working in his office in any capacity.
"Queensland Health has rigorous processes and strict policies in place to ensure our tender process is fair and equitable," he said.
"I will, of course, abide by all requirements and obligations regarding the awarding of contracts, including those relating to conflicts of interest.
"Furthermore, I have sought advice from the Integrity Commissioner on managing any conflict of interest."
The ABC has also contacted Ms D'Ath's office for comment.
