Was NHS boss bullied out of his job for raising concerns about financial crime in the health service?

Martin Shipton

An NHS chief executive who abruptly left his job last month told Cabinet Secretary for Health Jeremy Miles in July that he was being victimised for raising concerns about financial crime within the health service, we can reveal.

In a highly disturbing letter to Mr Miles that has been leaked to Nation.Cymru, David Donegan claimed he and the Velindre University NHS Trust of which he was CEO were the victims of “collusion, bias and bullying”.

As chief executive of Trust, Mr 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.

In a highly disturbing letter dated July 8 2025 that has been leaked to Nation.Cymru, Mr Donegan told Mr Miles: “I understand that my Chair has written to you about the Board’s concerns, which pre-date my arrival, about the governance of Shared Services. I know she is keen to brief you on these prior to her departure from office at the end of July 2025.

“I would be very keen for you to take her up on this and would be happy to join you, with my fresh set of eyes, for part of this session if you both felt that was helpful.

“As you may know, Ministers gave Velindre University NHS Trust the statutory function to deliver Shared Services in 2012, and all staff who deliver these important services are employees of Velindre. While there is rightly provision for these services to operate with a high degree of autonomy, as the legal entity and host, our Board is ultimately responsible for all governance, legal, compliance and employment matters.”

Mr Donegan goes on to make the point that Audit Wales had raised concerns about a number of financial matters relating to Shared Services, and that he had made reference to this in the Velindre Trust’s annual report.

He adds: “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. “There are many other concerns across a range of matters of relevance to our position as host [of Shared Services]t with evidence and legal advice to support them. This letter is not intended to brief you on the situation in detail either but rather draw your attention to the high-level context and challenges.

“It is important to say that these concerns were brought to my attention by the board and by other CEOs of NHS statutory bodies when I started, and I have evidence of written concerns around governance and legal compliance by Shared Services being raised internally by my predecessor since 2021.

“There is a long-documented history in fact, illustrating a contentious and difficult relationship on a range of matters between Shared Services and the Trust’s Executive Directors since circa 2020. This is neither a personality clash nor a recent issue.

“I am also writing to you because I am sad to say that I am now fearful for my own position, as a result of having raised these concerns to the current Accountable Officer for the NHS in Welsh Government [the then CEO of NHS Wales Judith Paget], and as a result of her apparently close relationship to senior Shared Services colleagues.

“In light of some recent correspondence, I now feel inhibited in raising concerns on any matter, particularly in meetings where DHSCEY [the Welsh Government department responsible for the NHS] officials are in attendance.

“I first brought these concerns to the attention of the Welsh Government in February 2025. As a new CEO to the NHS in Wales, I have been very surprised and disappointed by the response that I have had from senior officials in DHSCEY in attempting to resolve these issues amicably and constructively over recent months. Indeed, their posture has increasingly given rise to the impression of collusion, bias and bullying of the Trust and myself as CEO.

“At an extraordinary board meeting held recently to deal with a related matter, it transpired that DHSCEY officials may have conspired with Shared Services in 2024 to attempt to evade our board’s scrutiny of a major procurement exercise and supported Shared Services to sign legal agreements with Ministers on behalf of the Trust, which we do not believe they were in a position to do.

“While a review into the governance arrangements for Shared Services was instigated by Welsh Government in April 2025, correspondence from Welsh Government to the Trust since then has not given us confidence in the impartiality or approach of those that will receive and decide upon the report when it is concluded this July 2025.

“I believe that it is important that you have direct briefing from us, on the Trust’s position, ideally without DHSCEY officials in attendance. I realise this is highly unusual, however sadly that is the position we find ourselves in now.

‘Clear solutions’

He continued: “I am committed to resolving the concerns professionally and amicably and believe that there are clear solutions to these issues which will ensure the sustainable success of Shared Services within an appropriate governance framework. We remain focused on issues and not personalities or individuals.

“There is a risk that raising legitimate concerns and challenging conventional views or ways of working is being received or portrayed by some in Wales as ‘unprofessional conduct’. Despite the board giving me a mandate to address their concerns in the way that I have done, I am particularly concerned that our board is now being put under pressure to instigate disciplinary processes against me personally to inhibit my willingness and ‘freedom to speak up. Allowing this kind of culture to operate will inhibit leaders in doing what is right for the people of Wales and improving services.

“I hold myself to the highest standards of interpersonal conduct and since my clinical days, openly seek feedback on my approach and style. I am not perfect, however, as you will know only too well, doing the right thing is not always doing the easy or the popular thing.”

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

Mr Evans later issued a statement that said: “The information now emerging exposes what appear to be grave and systemic breakdowns in governance at the heart of NHS Wales. When a well-respected and diligent Chief Executive raises alarms about the handling of public money, the conduct of the Shared Services Partnership, and indications of potential criminal activity, and then loses his job, this is not a matter that can be brushed aside or explained away.

“These are allegations of the highest seriousness, the possible misuse of public funds, obstruction by senior figures, and a culture in which raising legitimate concerns carries personal risk. That should alarm anyone who cares about the integrity of Wales’s public institutions.

“Only a fully independent investigation, entirely separate from the officials and bodies implicated, can restore public confidence. Anything less would be a failure to confront the scale of what has been alleged.

“At a moment when the NHS is under extreme pressure, the idea that whistleblowers might face retaliation is intolerable. These claims demand immediate, transparent, and uncompromising scrutiny.”

Governance structures

Addressing Mr Miles during Health Questions, Mr ap Gwynfor said: “I have spoken at length about the need to improve the governance structures within our NHS. Governance is not necessarily the most exciting political subject, but is essential nonetheless. It means that the correct rules are in place and that they are followed, leading to good or bad culture; things like the rules and regulations around signing purchasing orders, ensuring that clear oversight structures are in place; change of command and answerability; and making sure that actions aren’t taken that could lead to criminal liability, corporate manslaughter or gross negligence. In the most recent Velindre trust annual report, the then CEO noted: ‘Governance concerns have…been raised by the Trust in relation to Shared Services.’

“Is the Welsh Government aware of these concerns, and, if so, what actions has the Government taken?”

Mr Miles responded: “There is a review that has been undertaken that is being discussed with the Trust. I’ve committed, at the appropriate time, when that conversation is concluded, to make a statement that will set out the conclusions of that discussion.”