< Blood Service News - 11.11.2010

Chief Executive to leave the Finnish Red Cross Blood Service

At its meeting of 9 November 2010, the Board of the Finnish Red Cross (FRC) considered the report of the organisation’s internal Audit Committee, on the special audit of the Finnish Red Cross Blood Service (the FRCBS). The Board has decided upon certain measures to ensure the operational capability of the FRCBS. Consequently, the Chief Executive of the FRCBS, Jukka Rautonen will leave his post.

At the beginning of September, the Board of the FRC established an audit committee to investigate publicly expressed concerns about the activities of the FRCBS’s Chief Executive, with regard to the purchase of consulting services. In 2004–2009, the FRCBS directly acquired the services of a single consulting company for extensive development projects, without competitive tendering.

The special audit noted that consulting contracts had not been subjected to the competitive tendering required under the FRC’s internal guidelines. Other irregularities were discovered in the conclusion of contracts, invoice itemisation and the accounts provided to the Boards of the FRC and the FRCBS concerning the contracts.

The Chief Executive of the FRCBS, Jukka Rautonen, is on sick leave and his employment contract will be terminated on 31 July 2011, following the period of notice. However, his obligation to work will cease immediately. This step was taken in order to safeguard the FRCBS’s operational capability.

The FRCBS will immediately declare the chief executive’s post vacant. The Board appointed Kari Aranko as acting Chief Executive for the time being.

The Board decided to continue its investigations concerning  the purchase of consulting services by FRCBS.

As per the Audit Committee’s recommendations, the FRC’s Board has decided to strengthen the organisation’s internal audit and financial supervision. In the future, the internal auditor will report not only to the Secretary General, but also directly to the Board’s Audit Committee. The Audit Committee assists the Board of the Finnish Red Cross in financial reporting and in preparing internal control and audit procedures.