A South Australian MP has told Parliament that concerns about conflicts of interest in the health department led to the collapse of a deal to trial CCTV in aged care homes.

Key points: CCTV trial in aged care collapsed due to conflict of interest in health department, says SA Best MP

CCTV trial in aged care collapsed due to conflict of interest in health department, says SA Best MP Emails from Care Protect's Managing Director reveal major concerns over negotiations with SA Health

Emails from Care Protect's Managing Director reveal major concerns over negotiations with SA Health SA Health say they have found no conflict of interest following an investigation

It was announced in April that British company Care Protect would run the Australian-first trial, but SA Best MLC Frank Pangallo told Parliament it pulled out because of concerns it was being hampered by bureaucracy, and worried about the exposure of its intellectual property.

"I have grave concerns about the conduct and ability of the SA Health team in charge to deliver this project after Care Protect abruptly quit," Mr Pangallo said.

The trial is a direct response to allegations of abuse in aged care, with the State Government already picking Northgate House and four regional facilities for its rollout, but it has been delayed to next year, after the Government's relationship with Care Protect broke down.

Mr Pangallo tabled emails from Care Protect's managing director Philip Scott, who revealed wide-ranging concerns over its negotiations with the department.

"In these emails, Mr Scott raises serious allegations of probity, conflicts of interest and constantly changing demands and technical specifications," Mr Pangallo told Parliament.

Frank Pangallo has 'grave concerns' about SA Health. ( Supplied: Facebook )

In the emails, Mr Scott said the department wanted to buy its own $1,000 cameras with functions like facial and number plate recognition, rather than use his company's $100 models, blowing out the costs of the project.

He said he was also asked to provide a level of detail beyond any previous Government dealings, and was worried about department staff in the process who were also involved with private companies in the sector.

"In an email to me, Mr Scott said and I quote, 'We had identified two individuals … during our due diligence process on [SA Health], both of who had very material and significant commercial interests in companies that, in our opinion, either had or could have had the potential to take our [intellectual property] and in time use it to set up a service in direct competition with what we do'," Mr Pangallo said.

"Under Commonwealth regulations, there are severe penalties for public servants who take part in procurement projects when they have undisclosed outside interests. They should apply here."

In a statement, SA Health said it looked into the allegations and found no conflicts of interest.

The allegations come at the same time the head of the SA Health reported himself to the public sector commissioner, after it was revealed he maintained a board position in a private company for two months after taking on the senior public service role.

Chris McGowan became chief executive of the department in May 2018, after leaving his role as chief executive of private health company Silver Chain, which operates the Royal District Nursing Service.

SA Health chief executive Chris McGowan ( Supplied: Silver Chain )

But in July 2018, he got an email from Silver Chain, saying he had not signed a form to resign as director of Silver Chain Corporate Services.

Since the overlap was revealed, Dr McGowan has asked the commissioner for public sector employment to review the issue, but Opposition health spokesman Chris Picton said that was not enough.

"During that time, he was involved in any number of complex and sensitive matters on behalf of the people of South Australia, including, he has admitted, signing through a brief to the Minister, appointing his former company Silver Chain as a recipient of taxpayer funding," Mr Picton said.

"We believe that an internal investigation is not enough. There is clearly a need now for a thorough, independent investigation into this matter."

In a statement, the Department for Health and Wellbeing said it was an "administrative error by Silver Chain" that "led to a delay in changing officeholder details on a non-operational, dormant subsidiary company".

It said Dr McGowan did not receive a salary, and was not involved in the negotiation or procurement for the contract involving Silver Chain.

The issues come just weeks after the Independent Commissioner Against Corruption, Bruce Lander, described the health department as being "riddled with maladministration".

But it was revealed the State Government refused his request of $2 million to launch a full evaluation.