N.L. confirms NLHS workers offered travel nurses jobs — and their own personal rental properties

The Newfoundland and Labrador health minister has confirmed allegations that Newfoundland and Labrador Health Services higher-ups offered private travel agency nurses job positions — and suggested they could rent their personal properties at a profit to those same nurses.

During question period at the House of Assembly on Wednesday, PC health critic Barry Patten brought up the allegations of a conflict of interest within the health authority, which were flagged by the province's nurses' union and asked the health minister if they were true.

Minister John Hogan said the allegations were brought to the Health Department's attention back in March. Tom Osborne, health minister at the time, then contacted the health authority and Denise Hanrahan, the province's auditor general.

Osborne's letter to Hanrahan was acquired by CBC News on Wednesday afternoon.

In the letter, dated March 21, Osborne writes that on March 15 he received correspondence from Yvette Coffey, president of the Registered Nurses' Union of Newfoundland and Labrador.

Osborne wrote that Coffey told him "NLHS managers may be purchasing and/or renting homes to internationally educated nurses and private agencies for their own personal benefit."

Hogan says that following Osborne's letter, the health authority investigated the situation and terminated the leases of the nurses that were found in violation of the the Public Procurement Act and Conflicts of Interest Act.

"Why wasn't that made public?" Patten then asked. "Why weren't [the managers] charged? Because this is not ethical."

In response, Hogan said a person can act unethically but not necessarily breach the Criminal Code, adding the government ensured the health authority complied with both laws.

"I was advised of this back in August that steps were taken to make sure that anything that was outside compliance with those two pieces of legislation has been taken care of and those leases have been terminated," Hogan said.

Hogan told reporters he doesn't know the number of leases terminated or where those nurses were working.

WATCH | The CBC's Mark Quinn reports on the latest controversy about travel nurses:

PC Leader Tony Wakeham told reporters that it was the responsibility of the health authority's senior executives to catch those problems.

"They should have been aware of any potential conflicts of interest and should have dealt with them before any of this ever had required the auditor general to investigate," Wakeham said.