Morris in hospital law fees inquiry; EXCLUSIVE Health fraud team investigates conflict of interest concerns.

Byline: BY DAVID BARTLETT Chief Reporter

THE NHS Counter Fraud Service has launched an investigation into allegations surrounding a conflict of interest regarding one of Merseyside's most prominent businessmen and public figures.

It is investigating allegations against Roy Morris, former chief executive of investment firm Rathbones Brothers and a deputy Lord Lieutenant of Merseyside.

The investigation centres on his role as a non-executive director of Liverpool Women's Hospital and his chairmanship of law firm Mace and Jones, which he took up in September, 2006.

The NHS Counter Fraud Service launched its investigation following a complaint from media barrister Andrew Bousfield.

He raised questions about an apparent rise in fees paid to Mace and Jones by the hospital and whether Mr Morris had acted properly in declaring interests.

A spokesman for the Counter Fraud Service said: "We received an allegation regarding a conflict of interest at Liverpool Women's hospital relating to Roy Morris and we are looking into it."

Last year, Mace and Jones earned pounds 98,000 in fees from the hospital, almost quadruple what it had received two years earlier. The Women's Hospital said it was co-operating fully with the investigation, but insisted it had "robust governance processes".

Mr Morris said he was unable to comment, but categorically refuted any suggestion of wrongdoing.

One of the region's best-known public figures, Mr Morris resigned as chairman of The Mersey Partnership, the region's official tourism and inward investment body, last November.

Two months later, it was revealed the Northwest Development Agency had stepped in to save it from insolvency - there is no suggestion Mr Morris did anything wrong. He was also chairman of brewer Cains until it collapsed earlier this year.

Mr Morris was appointed to the hospital's board in February, 2005, and was later made chairman of its finance and contracts committee. In September, 2006, he was appointed chairman of Mace and Jones, which has acted for the hospital since the mid-1990s. In the financial year 2005/06, Mace and Jones was paid pounds 28,000 by the hospital, the year after pounds 71,000, and, in the year ending March 2008, pounds 98,000.

The hospital said the increase in the amount of money paid to the firm had nothing to do with Mr Morris being made chairman.

The first large rise was down to the legalities involved in the creation of a new private fertilisation service, the hospital said.

And the second rise in cash to Mace and Jones was "due entirely to activity connected with Mr Bousfield".

The hospital said Mr Morris has "diligently complied" with keeping his register of interests up to date.

"Where there is a potential conflict of interest in relation to the work of any director of the Trust, this is automatically declared and the appropriate action taken, eg, the individual absents him/herself from the relevant meeting." The hospital said the remit of the finance and contracts committee is to oversee performance of the Trust's main contracts, in particular, contracts for clinical activity with Primary Care Trusts.

"It does not set contracts in areas such as legal services, nor does the Trust's system of corporate governance permit a nonexecutive director to make a unilateral decision about the placing of contracts on the Trust's behalf."

Mr Bousfield, who grew up on the Wirral and whose father used to work as a consultant at the trust, has campaigned for the hospital to release information.

In January, he revealed the Trust had the second-worst bullying rate in the country, from managers or team leaders, in the previous 12 months. This has since been tackled with a number of initiatives.

Martin Edwards, the hospital's solicitor, who works for Mace and Jones, has reported Mr Bousfield to the Bar Standards Council essentially for allegedly using behaviour unbecoming of a barrister. That complaint is still ongoing.

Last night Mr Bousfield said: "Earlier this year, I uncovered a terrible culture of bullying of professional medical staff at the Liverpool Women's.

"What followed was quite incredible. The Women's took this personally, and went on to launch a crusade against me with a complaint to the Barristers' Standards Board using public money, and writing increasingly acrimonious letters.

"One of the members of the hospital board, Roy Morris, is also the chairman of a local law firm, Mace & Jones. This needs to be investigated."

Last night, Women's Hospital chief executive Kathryn Thomson said: "The Trust is co-operating fully with the NHS Counter Fraud Service investigation. Until the outcome is known we cannot comment further; however, we are more than satisfied that our governance processes are robust."

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CAPTION(S):

Leading businessman Roy Morris - the NHS Counter Fraud Service has launched an investigation following a media barrister's complaint; Liverpool Women's Hospital; Roy Morris - kept 'diligent' register of interests; Kathryn Thomson