Tasmania's corruption watchdog has uncovered evidence two senior health bureaurcrats awarded friends and family members work worth more than $500,000 without following proper procedures.
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The Integrity Commission report into the conflict of interest allegations made against former heads of Tasmanian Health Organisation - South Jane Holden and THO North-West Gavin Austin.
Ms Holden was stood down as CEO of THO South last week, but taxpayers continue to pay her six-figure salary.
The Integrity Commission found conflict of interest was apparent in numerous occasions where family members including Ms Holden's husband and Mr Austin's son were awarded work.
"Sometimes these officers directly made the decisions that benefited their family and associates; sometimes those decisions were made by others who worked for Ms Holden and Mr Austin,'' the report found.
"There is evidence that, in the North-West, a practice has developed of entering into unofficial or ‘local’ arrangements to boost the remuneration of employees."
Health Minister Michael Ferguson is due to give a ministerial statement in Parliament shortly.
