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SocietyApril 6, 2018

Internal Affairs to investigate charity linked to Albi Whale’s so-called AI, ‘Zach’

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The department has confirmed it will look into the charity status of Terrible Foundation, following revelations in the Spinoff around the strange story of a purported supercomputer-powered artificial intelligence revolution in Christchurch

The Department of Internal Affairs has launched an investigation into the Terrible Foundation, the registered charity linked to Zach, a supposed pioneering artificial intelligence technology created in Christchurch.

The brainchild of father and son team David and Alberic Whale, Zach and their “Terrible” branded products, had won almost universally enthusiastic press until journalist David Farrier’s curiosity was piqued. In his investigation for the Spinoff, published a month ago today – and a follow-up report – serious questions were raised over the veracity of the Whales’ boasts, including claims that Zach could perform general medical practitioners’ diagnostic tasks.

The Terrible Foundation is a shareholder in Omega Health, the company for which the Whales had been promoting a share offering with Zach as its poster child. The foundation, which states as its ultimate ambition the eradication of global poverty, offered its own mysteries: from a one-year $400 million leap in asset valuations to the unattributed parroting of missions statements from the Ford Foundation.

Further questions have been since raised by the recipients of the charity’s benefaction.

A spokesperson for the Department of Internal Affairs said in an email: “As a result of recent media coverage the Department has decided to undertake an investigation into the Terrible Foundation to see if it remains eligible to be a registered charity under the terms of the Charities Act.

“We are unable to provide any further information while this is under way.”

In a “fact-check to the points made in an on-line article that appeared in The SpinOff” – distributed last month to various media but not the Spinoff – the Terrible Foundation condemned what it called “the selective use of publicly accessible information to support a proposition rather than an honest, objective representation”.

When contacted for comment by the Spinoff editor, the Spinoff editor said that impugning the honesty of David Farrier and the Spinoff is “wrong” and “stupid”.

The Whales’ document, which fails to address the fundamental questions that have been asked of the Whales’ enterprises, can be read here. It concludes by disputing “frequent references, in social media, to [Albi] Whale as some sort of con-man.

“Mr Whale has never sought payment for himself in any way,” says the unnamed author. Instead, he is “simply following the same path as he has set the Foundation – challenging inequality to make the world a better place.”

David Whale has been approached for comment.


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Burwood Hospital, Christchurch. Photo: Health.govt.nz
Burwood Hospital, Christchurch. Photo: Health.govt.nz

SocietyApril 6, 2018

Beyond the toxic mould: how we can get our DHBs back

Burwood Hospital, Christchurch. Photo: Health.govt.nz
Burwood Hospital, Christchurch. Photo: Health.govt.nz

District Health Boards were set up to do a lot more than direct funding and monitor wait times. It’s time we got back to DHBs’ original aspirations – for the good of New Zealand’s health, writes former DHB chair Peter Glensor.

Over the past week, a sobering picture of a terrible maintenance backlog – toxic mould, power failure, and a sewerage leak – has emerged in one of our biggest hospitals. The situation at Middlemore Hospital has understandably led to calls for more funding, and of course more money is needed to maintain our hospitals. But that’s not all.

Over the last decade, DHBs have been led far far away from their original purpose. They were set up in 2000 so that local communities could be in charge of setting their own priorities for their health, and have access to the resources they need to achieve those priorities. A local DHB couldn’t and shouldn’t develop an entirely separate health system, of course, but they could use their local involvement to ensure the best use was made of health dollars in every community. There was an expectation that DHBs would work with other local and government groups, so the whole community was engaged and committed to better health outcomes for our people.

Now, 18 years later, DHBs seem to have been cut down to little more than branch offices of a huge company called Health NZ, with almost no ability to adapt to their local community. The only important measures of success have been reduced to: Are you balancing the budget? Are you providing more elective surgery operations? And is your hospital’s emergency department meeting the six-hour target? The role of board members to improve the health of their communities was ignored because the only question the government seemed interested in was ‘what’s the state of your finances?’ We are now seeing the results of that narrow focus come out of the woodwork in hospitals and DHBs across the country, and we’re discovering the woodwork is mouldy.

Of course money, elective surgery and waiting times are important, and when I was a DHB chair we took them seriously. But those three thing don’t spell out the whole health system. DHBs like the one I chaired are charged with a wider responsibility – are we contributing to making our community a healthier place, and are our people experiencing better health?

With a change of government, this is the time to reaffirm that goal. Health is everybody’s business – it’s complex and expensive, and everyone needs to play their part. It’s not just about doctors and hospitals. It’s about healthy families who eat well and get exercise. It’s about safe communities and neighbourhoods. It’s about people who get access to help early, and communities where helping agencies are respected. It’s about people having their cultural identity acknowledged as a key element in their wellbeing. All the parts of the system need to be able to talk to one another, and trust one another. Enough resources need to go into mental health services, so that broken hearted families have somewhere to turn.

All that goes beyond the boundaries of the health system. What are the two best ways to get improvement in health outcomes for New Zealanders? People having a warm, dry and affordable home, and people having a secure, adequately paid job. Neither of these is the direct responsibility of DHBs and the health budget – but the evidence is clear how important they are to health gain.

It’s that complexity which local boards know about. If all we focus on is money and technical numbers, there’s no need for community involvement – a small board of technically and financially competent people can do that work. But if a DHB has to think about the whole system, and how it is working in the community, different insights and skills are needed. The reason DHBs have both elected and appointed members is precisely to get that skill mix, and so that communities are confident in their health system.

In my three years at Capital and Coast DHB, not only did we reduce the annual deficit from $40 million to $10 million, we worked with staff to prepare a set of targets which would show how well equality of health outcomes was being achieved in the DHB district. We understood the huge impact that inequality has on our community’s health, and how important it was to invest in reducing that.

In the Hutt Valley, we set up a regular meeting between our city councils, our regional council and the DHB. We all had an obligation to work for ‘community wellbeing’ (words since taken out of the Local Government Act!), and we agreed to work together, at first on four priorities – deprived communities, physical exercise, children and young people, and alcohol. The specific issues will change over time, but the principle of working together remains the best way to serve the community.

In the law setting them up, the first two functions of DHBs are:

Firstly, “to ensure the provision of services for the population and for other people as specified in its Crown funding agreement”.

Secondly, to “actively investigate, facilitate, sponsor, and develop co-operative and collaborative arrangements with persons in the health and disability sector or in any other sector to improve, promote, and protect the health of people, and to promote the inclusion and participation in society and independence of people with disabilities”.

DHBs were always intended to do more than run efficient hospitals. There’s so much more to our health than that.

It’s beyond time to get back to those basics. Yes, failures like we are hearing about at Counties Manukau will take more money to deal with. The backlog of maintenance and service delivery shortfalls is significant. But we also need to make a new effort to re-make DHBs into truly public bodies, responsible to the government and responsive to the public. We need true transparency, so that the bad news and the hard issues are made clear to the community and honestly talked about, not just waved away with PR spin. We New Zealanders can do it – we’ve already started on it, and we know it works.

Peter Glensor was an elected member of the Hutt Valley DHB for 12 years. He was chair of the Hutt Valley DHB, ALAC and DHBNZ, and was deputy chair of Capital and Coast DHB. He also helped found and lead a network of community-based health services across New Zealand.


This section is made possible by Simplicity, New Zealand’s fastest growing KiwiSaver scheme. As a nonprofit, Simplicity only charges members what it costs to invest their money. It already has more than 12,500 plus members who, together, are saving more than $3.8 million annually in fees. This year, New Zealanders will pay more than $525 million in KiwiSaver fees. Why pay more than you need to? It takes two minutes to switch. Grab your IRD # and driver’s licence. It really is that simple.