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Chairman quits crisis-hit NHS Tayside Chairman quits crisis-hit NHS Tayside
(35 minutes later)
The chairman of NHS Tayside has stood down after the health board was put in "special measures" by the government.The chairman of NHS Tayside has stood down after the health board was put in "special measures" by the government.
Health Secretary Shona Robison welcomed the resignation of Prof John Connell, describing it as the "right decision".Health Secretary Shona Robison welcomed the resignation of Prof John Connell, describing it as the "right decision".
She had earlier taken the unusual step of calling on him to step down in order to "restore public confidence".She had earlier taken the unusual step of calling on him to step down in order to "restore public confidence".
The health board has been struggling to keep within spending limits for a number of years and new allegations of financial concerns emerged this week.The health board has been struggling to keep within spending limits for a number of years and new allegations of financial concerns emerged this week.
'Laid bare''Laid bare'
It was claimed the health board used cash from an charitable endowment fund to "retrospectively" cover expenses including new computer systems in 2014. It was claimed NHS Tayside took more than £2m from its charitable endowment fund - which is made up of donations from the public or bequests in wills - to cover general running costs, including a new IT system.
The health board, which has received "brokerage" loans of £33.2m in the past five years, was reported to have used the endowment fund when "faced with a funding deficit" in 2013-14.
NHS Tayside was said to have temporarily suspended its constitution to allow this to happen, as the money was going to "retrospectively" fund projects already approved by the board.
Politicians said there was an "apparent misuse" of funds but the health board insisted it was "appropriate".Politicians said there was an "apparent misuse" of funds but the health board insisted it was "appropriate".
Last month, NHS Tayside's financial director retired as it was revealed the health board's funding gap was widening. Last week, the Scottish government was told NHS Tayside's finances were likely to deteriorate further.
The board received a £33m "brokerage" loan from the Scottish government last year and was due to receive a further £4m before 1 April. NHS chief executive Paul Gray told MSPs he expected NHS Tayside would require further brokerage cash from the government of between £9m and £12m.
The Scottish government was told NHS Tayside's finances were likely to deteriorate further.
The health secretary said: "Issues over past few weeks have laid bare the extent of the problems facing NHS Tayside and the minutes of a meeting of trustees in 2014 outline, in detail, the approval of the use of endowment funds by the chief executive.The health secretary said: "Issues over past few weeks have laid bare the extent of the problems facing NHS Tayside and the minutes of a meeting of trustees in 2014 outline, in detail, the approval of the use of endowment funds by the chief executive.
"It has become clear to me that the current structure of the board cannot deliver the improvements required to return to a sustainable position, while continuing to deliver safe and effective services to patients.""It has become clear to me that the current structure of the board cannot deliver the improvements required to return to a sustainable position, while continuing to deliver safe and effective services to patients."
Ms Robison also described the position of NHS Tayside chief executive, Lesley McLay, as "untenable". Ms Robison also described the position of NHS Tayside's chief executive, Lesley McLay, as "untenable".
Prof Connell has previously said that the board at NHS Tayside inherited a difficult situation and that he had only taken up his role two and a half years ago.Prof Connell has previously said that the board at NHS Tayside inherited a difficult situation and that he had only taken up his role two and a half years ago.
In a statement about his resignation, Prof Connell said it had been "an absolute privilege" to lead NHS Tayside. In a statement about his resignation, Prof Connell said it had been "an absolute privilege" to lead the health board.
He said: "I have always maintained a focus on safe patient care and ensuring staff are supported to deliver that at all times.He said: "I have always maintained a focus on safe patient care and ensuring staff are supported to deliver that at all times.
"I am very pleased that this has not been compromised during a difficult financial period.""I am very pleased that this has not been compromised during a difficult financial period."
Prof Connell said NHS Tayside was "on the correct course to transform its services".Prof Connell said NHS Tayside was "on the correct course to transform its services".