South Devon and Torbay Clinical Commissioning Group has called for the immediate suspension of Dr Vasco-Knight while an internal investigation is underway.

The CCG’s chief clinical officer Sam Barrell said: “The employment tribunal judgment raised concerns which the CCG views as extremely serious. We welcomed the resignation of the chair of South Devon Healthcare Foundation Trust, and it is our view that the chief executive should be immediately suspended while the trust’s investigation into her actions is brought to what must be a swift and conclusive resolution.

“It is fundamental to good patient care that whistleblowers feel able to raise their concerns without fear of retribution. We will be acting to ensure that the duties of candour, transparency and openness are upheld at every level.”

A trust spokeswoman said: “We note what the CCG says but there are important legal and othe rconsiderations for the trust and we do expect to make a further announcement on Monday.”

South Devon Healthcare Foundation Trust launched an internal investigation into its chief executive Paula Vasco-Knight after a tribunal last week found the trust covered up “nepotism” claims against her.

Two former employees raised concerns after the boyfriend of the daughter of Dr Vasco-Knight - who was also until last week NHS England’s national lead for equality and diversity - was given a job at her trust.

Subsequently the two former employees, Clare Sardari and Penelope Gates, were told they would not be able to remain in post because it was claimed they had broken trust policy by making “false accusations”.

Dr Vasco-Knight had insisted the nepotism allegation was false in an email to Anthony Farnsworth, then chief executive of Torbay and Southern Devon Trust, which was in the process of being acquired by South Devon.

“I want to be really clear the behaviour and false accusations of these two employees…broke trust policy and trust,” Dr Vasco-Knight wrote. “It is within the gift of South Devon Healthcare Foundation Trust to not wish to continue a partnership with staff who have behaved in such a way.”

However, when giving evidence at the tribunal Dr Vasco-Knight claimed that the trust did not consider the whistleblowers’ complaints to be “malicious” and said they had not returned to work because they had insisted that their line manager Adrienne Murphy and herself be removed from their posts first.

The tribunal heard that Ms Murphy tried to persuade the complainants to retract their allegations and said that both she and the complainants could lose their jobs if they pursued the issue.

The tribunal found that Dr Vasco-Knight’s evidence was “inconsistent with many of the contemporaneous documents”. However, the tribunal in Exeter dismissed a claim of wrongful dismissal.

The trust’s chairman Peter Hildrew resigned with immediate effect following the tribunal’s findings.

Acting chairman Topsy Murray today said that the tribunal had “left a number of complex issues to be resolved”.

She added: “We have therefore today embarked on a formal process to present our concerns to the chief executive. A committee of non-executive directors will meet with the chief executive and ensure she has proper opportunity to respond to those concerns.”

Ms Murray said the trust was commissioning a review into its whistleblowing policy to ensure that “staff are encouraged, enabled and supported to raise any concerns”.  

The trust will also be conducting an audit review into transparency after the tribunal found that the trust covered-up a report that contained nepotism claims against Dr Vasco-Knight.

The trust said that no end date for the investigation had yet been confirmed.

Story updated 7 February to include South Devon and Torbay CCG’s statement.