Health Minister Tony Ryall faced more accusations of political interference in Parliament today over his sacking of the Otago District Health Board chairman.
Mr Ryall yesterday removed Richard Thomson from his role after holding him accountable over a $17 million fraud which took place at the DHB over six years.
Mr Thomson, who remains on the board but was replaced by Errol Millar, yesterday said his Labour Party membership had provided extra motivation for Mr Ryall to remove him.
"He thought he could get rid of someone who batted for the other side and make some political capital out of it," Mr Thomson told NZPA.
Labour Party Dunedin North MP Pete Hodgson said in Parliament today that Mr Thomson and the five other Otago DHB members were re-elected in 2007 by a public who had full knowledge of the fraud case.
He said Mr Millar had confidence in Mr Thomson and had said his handling of issues surrounding the case were appropriate.
Mr Ryall suggested the new chair was not likely to say otherwise.
"I think it needs to be recognised that Mr Millar was commenting in the context of managing ongoing board relationships," he said.
He brushed off a statement from Mr Hodgson suggesting Mr Ryall had wanted to appoint "his own man", saying Mr Millar had in he past been appointed by various Labour MPs to several public positions.
"This matter is not personal, and it's not political," he said, reiterating that the largest fraud in New Zealand state services history had taken place at the DHB under Mr Thomson's watch.
Former chief information officer Michael Swann and his friend and business associate Kerry Harford were found guilty in December last year of defrauding the DHB of $16.9m.
They are awaiting sentencing.
