Trustees follow Challenge Trust staff out the door

The country’s largest private mental health services provider is in crisis with its leadership in disarray following the dumping of chief executive Clive Plucknett.

Board trustees Stephen Grey and Barrie Green have resigned, along with chief operations officer Karna Luke and senior charge nurse Dianne Bartlett.

The staff and director exodus comes three weeks after NBR revealed discontent over the governance of the trust with staff protesting outside chairman Allan Duffy’s house in Auckland.

About 170 employees have sent a letter to Health Minister Tony Ryall outlining their concerns, including allegations of potential misuse of public funds.

The staff are concerned about the trust’s future without Mr Plucknett at the helm and also what happened to money organised for a fundraising night by one of the trustees.

Accounts show the trust received income in the form of government grants and contracts totaling $14.69 million in 2010, up from $12.56 million in 2009.

Challenge Trust employs some 260 staff, providing services out of 24 sites in Northland, Auckland, Waikato, Gisborne and the Bay of Plenty regions.

The Trust’s 1500 clients include people affected by mental illness, physical disability, intellectual disability, addictions, dual disability and dual diagnosis.

It is also Auckland's only eating disorder services provider.

The organisation has contracts with District Health Boards, the Accident Compensation Corporation, Ministry of Health, Ministry of Social Development and other government departments, and an increasing number of private clients.

In a statement released yesterday Mr Duffy said Mr Plucknett had “resigned” on November 11.

However, NBR understands he was forced out due to concerns the Trust had grown too quickly under his tenure. This had the effect of stretching the board’s governance capabilities.

While former Manukau City Council chief executive Leigh Auton initially replaced Mr Plucknett, the trust has since appointed former Housing NZ chief operating officer Stephen McArthur as interim chief executive until a permanent appointment is made.

“We now are looking for a new CEO who will consolidate and build on our recent period of high growth,” Mr Duffy said in a statement.

“We have grown from 120 to 350 people in 18 months and we need to consolidate on our record of exceptional service to the sector while continuing to meet our clients’ needs.”

Three existing trustees -Pamela Rankin, Jane Latimer and Mr Duffy - will remain on the board providing “continuity for the future,” Mr Duffy added.