Two directors of a private hospital group at the centre of an investigation by the NHS Counter Fraud and Security Management Service have been sacked for 'incompetence'.

Chief executive Andrew Breeze and finance director Dominic Wilson were sacked by Norfolk-based Chancellor Care, which runs three small mental health hospitals.

They were arrested a year ago and are on bail but have not been charged.

The investigation centres on whether the NHS received all the services it had paid for.

Last week the board of Chancellor Care decided to dismiss the directors after an internal inquiry into the running of Cawston Park, one of the company's hospitals.

The company's new chief operating officer Richard McKenzie said: 'An internal investigation uncovered evidence of management incompetence on the part of both Mr Breeze and Mr Wilson.'

The directors have appealed unsuccessfully against the sacking.