Inspectors for the ombudsman visited Ward 10A – the inpatient unit for adults with intellectual disabilities – in Dunedin in March.

They observed long-term seclusion, prolonged restraints and people being rewarded for “good” behaviour with access to basic necessities including using the toilet.

Health New Zealand confirmed plans to close the ward and relocate its patients, and the Ministry of Health said it would launch an independent investigation following concerns from the ombudsman, district inspectors and others.

On Tuesday, the ministry published the terms of references, saying the independent inquiry would examine the care provided to patients over the two years to June.

Director of mental health Dr John Crawshaw said the inquiry might make recommendations to improve oversight, compliance and best practice for Ward 10A and other facilities.

“The inquiry’s scope includes considering whether care met legal and clinical standards, whether restrictions on care recipients were justified and proportionate, whether the rights of care recipients were upheld, and whether there are wider systemic issues that require attention,” he said.

That included if any unjustifiable restrictions had been influenced by policies or infrastructure requirements, if Health New Zealand provided adequate oversight and managers had the right authority to discharge their duties and if the concerns raised received timely and appropriate responses and actions from any agencies involved.

The inquiry will consider if it is necessary to refer any potential breaches to the Health and Disability Commissioner or to the police if there is suspected criminal conduct.

Auckland-based district inspector Andrew Molloy will lead the inquiry with support from Wellington-based consultant clinical psychologist Nigel Fairley.

Director-general of health Audrey Sonerson commissioned the investigation, which is being set up under section 101 of the Intellectual Disability (Compulsory Care and Rehabilitation) Act 2003.

The inquiry will report its findings and recommendations within six months of starting to the director-general of health.