A former chief executive of the Norfolk and Norwich University Hospital has been suspended from his job at an Australian health trust over allegations regarding the way a contract was awarded.

Malcolm Stamp, who was CEO of the N&N for ten years, has been referred to Australia's Crime and Corruption Commission over an 'employment procurement matter' relating to his role as chief executive of Brisbane's Metro North Health and Hospital Board.

Australian media have reported that Mr Stamp, who joined the Queensland hospital trust last year, is alleged to have asked for a family member to be employed as a condition of a contract awarded by the health trust.

The CEO denies any wrongdoing, but was suspended by his employer last week along with Scott McMullen, executive of corporate services and performance, after an investigation was launched.

The allegations centre around a contract awarded to Healthcare Procurement Partners, a business based both in Brisbane and Britain. It has been alleged additional incentives were offered if Mr Stamp's daughter was hired as a graphic artist as part of negotiations over a new contract at the Australian hospital.

Hospital staff were informed last Monday that the two executives had been suspended pending the outcome of an external investigation.

The probe has also been raised in Queensland's state parliament.

Queensland health minister Lawrence Springborg said that the allegations against Mr Stamp and Mr McMullen involved employment and procurement and insisted that patient care had not been compromised.

'In these circumstances I will not canvas the details except to give an assurance that there were no clinical or patient safety issues.'

'The issues were matters that relate to employment and procurement. This government acts on complaints, investigates complaints and suspends if warranted,' he told parliament.

Mr Stamp, who has more than 30 years experience working in the NHS, oversaw the N&N's relocation from Norwich to a new site in Colney in 2001 before leaving the trust in 2003 to join Addenbrooke's Hospital in Cambridge. He is believed to still own property in Norfolk.

There is no suggestion of any similar allegations during his work for the NHS in England. A spokesman for the N&N declined to comment on the matter.