The Royal Cornwall Hospitals NHS Trust has failed in its appeal over the sacking of former chief executive John Watkinson.

The Trust appealed against the decision made at an employment tribunal that Mr Watkinson – who was brought in to turn around the organisation after debts hit £36 million – had been sacked for being a whistleblower over the move of Upper GI cancer surgery.

Today it was announced their appeal had now failed, promoting the chairman of the Trust to describe the whole issue as “an unhappy episode in the Trust’s history.”

Chairman Martin Watts said: “The Trust is deeply disappointed by this outcome. In our appeal we sought clarification that John Watkinson was not sacked for whistleblowing over the move of Upper GI cancer surgery, but because of the fundamental break down in trust and confidence with the Board over his performance.

“It has always been our view that important evidence was not given due weight at the initial employment tribunal in May last year. Whilst the employment tribunal recently supported our application to reduce the amount of the award to Mr Watkinson, this is little compensation for an unhappy episode in the Trust’s history.

“We now consider this matter closed and wish to put the matter behind us to focus firmly on the future.”

He added that the Trust had experienced a “difficult few years” confronting historic debts and implementing the 27 recommendations of an independent review that concluded in early 2009 that the Trust was heading for “corporate failure.”

Mr Watts said: “The Trust is now making positive progress. We are delivering our key quality, activity and financial targets, and our staff are working extremely hard to deliver better, safer care for our community.”