Highest ever paid NSW public servant and former CEO fronts icare inquiry
A former chief executive officer of embattled state insurer icare took home more than $1.6 million in his final year in the role, making him the highest paid public servant in NSW history.
Vivek Bhatia fronted a parliamentary inquiry into the state-run workers compensation scheme on Friday, where he faced allegations he repeatedly failed to declare conflicts of interest he had with companies that won icare contracts worth tens of millions of dollars.
Former icare CEO Vivek Bhatia giving evidence at the inquiry into the workers compensation scheme on Friday.Credit:Louise Kennerley
The upper house inquiry was launched after a joint investigation by the Herald and ABC TV’s Four Corners which revealed icare had underpaid thousands of injured workers by up to $80 million.
Mr Bhatia was the first chief executive officer and managing director of icare when it formed in September 2015, before he left in January 2018.
When he exited, Mr Bhatia's fixed remuneration was $820,000. He also received a $410,000 incentive and an additional performance pay out of $410,000.
He said he was not aware the $1.64 million he earned in his final year made him the highest ever paid public servant in NSW.
At the centre of Friday's hearing was Mr Bhatia's relationship with global professional services firm Capgemini, which was part of a consortium that won a tender process to build a claims and billing platform for icare.
The Herald has previously revealed the tender process took less than three weeks, a time frame so quick that alternative credible vendors pulled out ahead of the deadline, leaving the Guidewire/Capgemini consortium the only valid candidate.
Mr Bhatia told the hearing he had known senior figures at Capgemini in a social context for "three or four years" before they became the sole successful bidder.
He said he told the board he would recuse himself from the steering committee, "but I do not recollect putting it in writing," he said.
Greens MLC and committee member David Shoebridge.Credit:Kate Geraghty
The committee then heard that when the absence of conflict of interest reports was raised in a 2016 meeting by head of compliance Chris McCann, Mr Bhatia "raised [his] voice," and shouted.
Quoting Mr McCann from an earlier statement he gave to the committee, Greens MLC David Shoebridge said Mr Bhatia thumped his fist on the table: "You yelled at him, and you said to him, 'you are f--king useless. You're an investigator, go investigate.'"
"I definitely did not say that," Mr Bhatia said. "You have already heard that I have denied saying that."
Mr Shoebridge put it to Mr Bhatia that he told his senior management team he would not be restricted to using companies chosen through a tender process.
"That you would choose who you want, and you wouldn't follow the NSW government procurement process," Mr Shoebridge said.
Mr Bhatia responded: "Not at all. No I did not."
He was later asked about 42 gifts he received in his time at icare, all of which were entered into a gifts register on the same day, two years after they were received and four months after he left.
Five gifts were received from Capgemini, including two champagne hampers and a lunch at the Establishment restaurant and a dinner at the Malaya.
Responding to why the 42 gifts were not disclosed at the time they were received Mr Bhatia said it was the responsibility of his assistant.
"The characterisation of this and the demonisation that is happening, you know, is extremely unfair," he said.
Lucy Cormack is a state political reporter with The Sydney Morning Herald.