Tim Brett: "Decided with regret"

Tayside Health Board said that it had accepted Tim Brett's resignation with effect from 31 October.

Announcing his decision, Mr Brett said: "Having now had the opportunity to consider very carefully the conclusions of the parliamentary audit committee and taking into account the wider interests of the NHS in Tayside, I have decided with regret to resign my post as the chief executive of Tayside Health Board."

A spokesman for the board said it would now help the chief executive secure another position outside the trust.

NHS chairman Peter Bates paid tribute to Mr Brett and praised his decision to stand down in the face of criticism.

"Tim has conducted himself with great dignity and consideration for the challenges facing the NHS in Tayside at present," he said.

Room for improvement

"It is typical of the personality of the man that he has approached the professional and personal pressures of the last few weeks with pragmatism, openness and honesty."

Auditor General Robert Black conducted an inquiry earlier this year after Tayside Health Board reported a �10m overspend in 2000.

His report concluded that there was room for improvement in the accountability and reporting of Tayside health bodies to the Scottish Executive Health Department.

Auditor General Robert Black

The Scottish Parliament's audit committee then undertook a further inquiry in a bid to ensure that taxpayers' money was being spent effectively in Tayside.

After hearing evidence from the area's senior health service officials, the committee published a critical report of management practices.

It identified failures in financial control as the main reason for the substantial overspend.

The report also pointed to fundamental disagreements and a breakdown in communications between officials during the reorganisation of the NHS.

A new board has since set about getting health service spending in Tayside back on track although this is anticipated to take several years.