Devon health boss Dr Paula Vasco-Knight resigns

Dr Paula Vasco-Knight was appointed a CBE in the New Year Honours List for services to the NHS

A suspended hospital chief executive who was criticised at an employment tribunal for her treatment of two whistle-blowers has resigned.

Paula Vasco-Knight was suspended in February after being accused of nepotism for recruiting her daughter's boyfriend to a job at Torbay Hospital.

She was suspended on full pay.

Dr Vasco-Knight had decided to relocate to the north-west of England for "family reasons", said South Devon Healthcare NHS Foundation Trust.

'Achievements overshadowed'

The tribunal in January found Claire Sardari and Penny Gates had been victimised as a result of whistle-blowing about their concerns.

The South Devon Healthcare NHS Foundation Trust, which runs the hospital, was found to have "dishonestly" suppressed a report into accusations of nepotism.

Its chairman Peter Hildrew resigned immediately following the decision.

Earlier in May it was believed Dr Vasco-Knight was challenging the tribunal.

In a statement, South Devon Healthcare NHS Foundation Trust said: "It is unfortunate that Dr Vasco-Knight's achievements have been overshadowed by the employment tribunal judgment.

"Notwithstanding the judgment of the tribunal, Dr Vasco-Knight asserts that an independent report commissioned by a former chair of the trust prior to the tribunal found no evidence that Dr Vasco-Knight had breached trust policies."

It added that "no payments have been made to her other than those to which she is entitled under her contract of employment".

Dr Vasco-Knight was appointed a CBE in the New Year Honours List for services to the NHS.