Mr Free has asked us to clarify that the CPS "found no case to answer and no charges were ever made" against him.

He said: "I am still a governor of Musgrove and I still have a wife and home to support.

"My wife has suffered enough throughout last year and she does not need more stress as is still being caused by our loss of income."

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BOSSES at Taunton's Musgrove Park Hospital are awaiting the outcome of a police investigation before deciding the future of one of the governors.

Mike Free was arrested on Monday on suspicion of fraud by false representation and released on police bail after being interviewed by detectives.

The police probe centres on allegations that Mr Free, aged 71, took money for building work he then failed to complete.

Mr Free, a hospital governor for East Somerset and former Mayor of Glastonbury, denies any wrongdoing.

Asked by the County Gazette if the situation raises issues about his role at Musgrove, he said: "Quite right.

I haven't told them (Musgrove) yet.

"Until I hear from the police, I don't know what to say. I'm denying it all.

"It's one woman, her family and friends.

"I can't say anything because the police are investigating.

"I'm going to contact Musgrove soon and see what they think."

Sharon Smith, who has claimed Mr Free defrauded her of a refundable £7,000 deposit, said: "I wanted my money back as the contract didn't go ahead, but he kept it.

"Why is this person high up in Musgrove?"

She added that her ex-husband, other family members and a friend had all lodged complaints against Mr Free with Action Fraud.

Mr Free has been bailed for six weeks, while officers check out a computer and phone they seized from his home in Underwood Road, Glastonbury.

An Avon and Somerset Police spokesman said: "A 71-year-old man was arrested on Monday (January 16) on suspicion of fraud by false representation. He has been released on police bail."

A spokesman for Musgrove said: “We are aware that allegations of fraud have been made against one of our governors.

"On completion of any police investigation we will decide if it is necessary to carry out an internal review.”