LHSC supervisor speaks publicly on internal fraud investigation during community update

LHSC has first public meeting following a fraud scheme involving former employees. CTV London’s Reta Ismail has more.

For the first time since London Health Sciences Centre (LHSC) filed multiple lawsuits related to an alleged internal fraud scheme, the hospital’s provincially appointed supervisor is speaking publicly.

David Musyj, who was appointed to oversee operations at LHSC earlier this year, opened the hospital’s first community update meeting since the summer break by addressing the ongoing investigations.

“When I became and was made aware of some of the concerning information, that’s when I engaged the London Police Service to investigate,” said Musyj.

“At the same time, we opened an internal forensic audit conducted by a third party.”

Several statements of claim filed by the hospital name former employees and contractors in what LHSC alleges was a procurement scheme that defrauded the institution of tens of millions of dollars over more than a decade.

“These statements of claim reflect our commitment to ensuring those involved in past procurement practices are held accountable,” Musyj said, “and to strengthening our oversight and governance in operations, in policies and procedures and in financial practices.”

Musyj acknowledged that no system is completely immune to fraud, but said the goal is to ensure this type of misconduct cannot go undetected for years.

“I don’t want to come across that this will eliminate this from ever happening again. Anyone who says that is not living in reality,” he said.

“What cannot happen again is for an event like this to happen and happen over such an extended period of time. That’s got to stop.”

In response, LHSC says it has implemented several changes, including process improvements, enhanced auditing and oversight, a vendor compliance program, whistleblower protection and renewed leadership and governance policies.

The hospital has also hired auditing firm KPMG to conduct a third-party review.

“It’s in the middle six figures annually,” said Musyj. “It all depends on the volume of work, but it’s well worth the investment. When you’re dealing with a $1.8 to $1.9 billion organization, to spend that type of money to support internal audit staff and bring in that expertise is important.”

Tuesday’s update also included information on the upcoming cold and flu season, as well as new initiatives being launched across the organization.