The actions of public servants who spent millions of dollars more than they were authorised to on a WA health department IT contract, could be re-examined by the corruption watchdog.

A damning auditor general’s report this week revealed the department had failed to effectively manage the contract worth $44.9 million, letting it blow out to at least $81.4 million.

One public servant who had a $100,000 limit spent more than $40 million on contract variations.

The matter is now in the hands of the Public Sector Commissioner and if he uncovers evidence of impropriety, criminality or corruption, he will refer that upwards to the Corruption and Crime Commission or the police, Premier Colin Barnett said on Friday.

Shortly after the report was handed down on Wednesday, the CCC announced it had decided not to undertake a separate investigation, saying it had identified serious failings within the department, but this fell short of serious misconduct by individuals.

“Clearly, the rules of contracting were broken,” Mr Barnett told reporters.

“I think everyone deserves a fair hearing, so I’m not going to pre-judge the situation.”

Health Minister Kim Hames told parliament this week that three public servants had been identified as having exceeded their authorised procurement limits, later advising a further two individuals had done the same.

“I can confirm that one individual remains an employee of WA Health and that the director general has advised me that any necessary disciplinary action with regard to this individual will be progressed,” Dr Hames told parliament on Thursday.

“I have also been advised that one individual is understood to be engaged as a contractor with WA Health and that any concerns about the conduct or otherwise of this individual will also be progressed as a matter of priority.”

The opposition has called for ‘heads to roll’ over the scandal.