UPDATE, 3.15pm: A spokesperson for state health minister, Jill Hennessy, said the Victorian government had been advised Mr Mulder would stand down.
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“The chair of Bendigo Health has advised the minister that CEO John Mulder has temporarily stood aside from his position,” the spokesperson said.
EARLIER: Bendigo Health chief executive John Mulder has temporarily stood down.
Mr Mulder said in a statement he had stood down but was unable to provide further comment for legal reasons.
“I am unable to provide further detail,” he said.
“I look forward to resuming my wonderful working relationship with my board, senior executive team and my staff across Bendigo Health and I am immensely proud of what we have been able to achieve together.
“I also look forward to completing my vision for health services in this community when this is resolved.”
Bendigo Health board chair Bob Cameron said Bendigo Hospital Project executive director and chief nursing officer Peter Faulkner would act as CEO.
“Mr Mulder has temporarily stepped down as CEO of Bendigo Health and for legal reasons I am unable to provide further details,” Mr Cameron said in a statement.
“The board of Bendigo Health hopes this matter is resolved in a timely manner.”
The Bendigo Advertiser understands Bendigo Health staff were sent an email this morning, advising them Mr Mulder had stood down.
Mr Mulder has held the position of chief executive at Bendigo Health since June, 2007.
During that time, he has overseen the planning and construction of the city's $630 million new hospital, which opened in January.
The project was tainted in recent years by an investigation by the Independent Broad-based Anti-corruption Commission into serious corruption allegations at Bendigo Health.
Former construction manager Adam Hardinge was recently convicted and fined $15,000 in the Bendigo Magistrates’ Court after pleading guilty to nine theft and deception charges.