Trust chief's pay-off is withheld

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The Maidstone and Tunbridge Wells NHS Trust will not, at this time, pay any of the package it agreed with Rose Gibb, he said.

Mr Johnson said the process by which the trust reached its decision to offer her money is likely to be regarded as unlawful.

Mr Johnson stepped in to the row over Ms Gibb's severance package after a damning report from the Healthcare Commission published last month showed appalling conditions directly contributed to the deaths of 90 people from C diff. He ordered the trust to withhold the package while the Government sought legal advice on the matter.

The Commission's report detailed how some nurses told patients to "go in their beds" rather than help them to the toilet and said senior managers failed to respond adequately to outbreaks of C diff.

Mr Johnson accepted the resignation of the trust's chairman James Lee after it was initially rejected by the board.

Mr Johnson said on Thursday: "The trust, under the leadership of the new chairman, has decided it will not, at this time, be paying any of the severance package originally agreed with Rose Gibb, the former chief executive.

"The legal advice I have received, following my decision to direct the trust to withhold any payment to Rose Gibb, clearly shows that the trust did not follow due process in getting all the necessary approvals it required for Rose Gibb's severance package and that the trust's decision is likely to be regarded as unlawful.

"The trust has now referred all the relevant papers to its external auditors to review and is considering the potential next steps.

"I have also instructed the NHS Chief Executive, David Nicholson, to write to all trusts today advising them of the proper process approvals they must seek before making any severance payments to senior managers that are above contractual commitments."