AN NHS trust suppressed a report into accusations of nepotism, a tribunal has found.

South Devon Healthcare NHS Foundation Trust chief executive Dr Paula Vasco-Knight, from Okehampton, was accused of appointing her daughter's boyfriend to a senior role. The tribunal ruled the trust hid the findings of the subsequent inquiry and misled other parties by contending Dr Vasco-Knight was exonerated.

The two whistle-blowers, senior manager Penny Gates and management development lead Clare Sardari, complained that Dr Vasco-Knight did not declare a personal interest when her daughter's boyfriend Nick Schenk was interviewed for a senior position in mid 2012.

The tribunal ruled that both women have suffered by making the allegations. Compensation will be decided at a future hearing.

Trust chairman Peter Hildrew resigned with immediate effect.

Mr Hildrew said: 'As the most senior office holder in the organisation I take responsibility for the actions, some of them my own, which have led the tribunal panel to conclude that our trust has caused detriment to two former employees of Torbay and Southern Devon Health and Care NHS Trust. This damages the reputation of the trust, for which I am truly sorry.'

The board of South Devon Healthcare NHS Foundation Trust held an extraordinary meeting last Friday to consider the findings of the tribunal.

Acting chairman Topsy Murray said: 'The issues raised by the employment tribunal panel are extremely serious, relating as they do to the behaviour of individuals in relation to a whistleblowing case. 

'Our former chairman has already stepped down and apologised for any actions, including his own, which have led to this situation.

'The employment tribunal report raises a number of complex issues which the board needs to consider with the aid of further legal advice.'

The board was due to reconvene yesterday (Wednesday) and a further statement was to be be made after that meeting.

Ms Murray said: 'I would like to reassure our patients that hospital services, patient care and safety are absolutely unaffected by this case. Our patients today are receiving the same degree of care, compassion and professionalism as they always have done.

'We are very proud of our reputation for excellence and innovation and wish to thank all our staff for their continued dedication.'