Health secretary releases statement addressing allegations of criminal activity within Welsh NHS

Emily Price

Cabinet Secretary for Health Jeremy Miles has released a statement addressing allegations concerning criminal activity within the Welsh health service.

On Thursday (December 4) Nation.Cymru revealed that a “well respected” NHS chief executive who abruptly left his job last month had told Miles in July that he was being victimised for raising concerns about financial crime within the health service.

In a highly disturbing letter to the health secretary, David Donegan claimed he and the Velindre University NHS Trust of which he was CEO were the victims of “collusion, bias and bullying”.

He wrote: “While we do not go into the concerns in any detail in our annual report, it is important for you to know that the concerns are numerous and serious. As just one example; we are in receipt of legal advice suggesting that individuals may be liable to criminal prosecution for improperly obtaining regulatory licences, contrary to board instruction.

“These concerns have however been largely dismissed by the Welsh Government to-date, and we feel that we have been obstructed from investigating them properly.”

Donegan was responsible for the NHS Wales Shared Services Partnership (NWSSP), which delivers a wide range of professional, technical, and administrative services to NHS Wales working with wider public services, including the Welsh Government.

The Welsh Conservatives’ Shadow Health Secretary James Evans and Plaid Cymru’s health spokesperson Mabon ap Gwynfor both raised concerns about Donegan’s apparent dismissal during health questions in the Senedd on December 3.

Opposition politicians had since called for a fully independent probe into Donegan’s dismissal and the allegations of criminal activity.

In a statement released on Friday (December 5) Miles said he wanted to state “unequivocally” that the Welsh Government had neither seen nor received “any evidence to suggest criminality”.

He said: “This statement updates Senedd Members on the Independent Review of NHS Wales Shared Services Partnership (NWSSP) accountability and governance arrangements, and separately the appointment of an Interim Chief Executive for Velindre University NHS Trust.

“In April 2025, the former Director General of Health, Social Care and Early Years and NHS Wales Chief Executive commissioned an independent review of NWSSP’s governance and accountability arrangements. NWSSP is an NHS organisation, hosted by Velindre.

“These arrangements have been in place for 14 years. During this time, NHS Wales has undergone significant change, including the pandemic, and NWSSP has grown substantially since its creation in 2011.

“The review engaged Velindre, NWSSP, and other NHS stakeholders. The recommendations were shared with the Chairs of Velindre and the Shared Services Partnership Committee, who have shared their joint feedback.

“The final recommendations and response will be published to ensure transparency, and implementation will follow, through a collaborative programme between both organisations and Welsh Government to strengthen governance and accountability.

“I would like to address the allegations that have been made concerning criminal activity within NWSSP. I want to state unequivocally that Welsh Government has neither seen nor received any evidence to suggest criminality.”

On the appointment of an Interim Chief Executive for Velindre University NHS Trust, the health secretary said: “On 18 November, Welsh Government was informed that the employment of the former Chief Executive, David Donegan, had been terminated.

“Carl James has been appointed as Interim Chief Executive. Carl has previously undertaken this role on an interim basis, and his appointment will provide stability to the organisation at this time.

“NHS Chief Executives are employees of their respective organisations. Any matters relating to their employment are the responsibility of their Boards and organisations.

“The Welsh Government had no involvement in the termination of the former Chief Executive’s employment.

“This decision, made by the Velindre Board, was wholly independent of and not influenced by the Independent Review of NWSSP governance and accountability arrangements.

“As part of my regular meetings with the Chair, I will continue to seek assurances on the culture, leadership, and management of the organisation to ensure it has the support needed during this transitional period.”