One of Scotland's most prestigious trusts has been left without a chief executive after new recruit Malcolm Stamp announced his intention to stay on at Norfolk and Norwich Health Care trust.

Mr Stamp was due to lead the newly-formed Lothian University Hospitals trust from April. He says 'unforeseen family reasons' have made him decide to stay on as chief executive in Norwich.

Health managers admit they are puzzled about why Mr Stamp, described as 'powerful' and 'politically skilled,' turned down the Lothian post.

He told HSJ: 'The reasons are family and they are personal - I am not going to elaborate on them.'

Barry Sealey, chair of Lothian University Hospitals trust, described the situation as 'regrettable.'

Charles Swainson, the new trust's medical director, has been appointed as acting chief executive designate. The trust began re-advertising the post this week.

Edinburgh Unison branch secretary Tom Waterson said: 'Those who were interviewed alongside Malcolm Stamp have been told they will not be successful - so our real concern is that any new candidates will come from outwith the NHS, and will not have the experience needed.'

The Crown Office has announced that the suspended chief executive of a Scottish trust will not be prosecuted for alleged salary overpayments.

Derek Pollacchi has been suspended from his£81,000 a year post at Central Scotland Healthcare trust since last July, while an independent inquiry, the procurator fiscal and finally the Crown Office investigated allegations against him.

A trust spokesperson said members will be asked to decide Mr Pollacchi's future at a board meeting next week.

He confirmed Mr Pollacchi, even if reinstated, will not become the new chief executive of the expanded Forth Valley trust which takes over from Central Scotland Healthcare trust in April.