The Irish Blood Transfusion Service said yesterday it was "delighted" that its dispute with Mr Martin Hynes, its chief executive, had been settled.
In a statement, the agency said a suitable payment would be made to Mr Hynes "recognising the valuable and dedicated service he has provided to the Blood Transfusion Service and to the public."
Under the settlement, the IBTS is to pay Mr Hynes €186,598 in lieu of 18 months service, in addition to €60,000 in respect of legal costs.
Mr Hynes is to resign as chief executive on October 31st next on completion of a period of paid annual leave which began yesterday. During this period Mr Hynes will not be entitled to perform the duties or functions of chief executive.
Shortly after yesterday's announcement, the chairman of the IBTS board, Mr Michael McLoone, appointed the former deputy chief executive officer, Mr Andrew Kelly, as acting chief executive.
Mr Kelly will assume the new role today on return from a fortnight's leave.
The IBTS has given no public explanation for its decision to suspend Mr Hynes last month, a move which caused its chief executive to go to the High Court. It is understood to relate to a recently-announced investigation into how at least 28 blood donors were not immediately informed of hepatitis C test results in the 1990s.
According to Mr Hynes, he had requested that the IBTS regional director for Cork, Dr Joan Power, give information on the issue to a colleague but that she refused. As a result, Mr Hynes suspended her. However, her suspension was last month overturned by the board.
Mr Hynes and Dr Power, who has been credited with exposing the hepatitis C scandal, had previously clashed on a number of issues, notably the IBTS's decision to cease blood testing in Cork.
The latest controversy could not come at a worse time for the IBTS, with the agency facing a fresh inquiry into its actions, as well as the publication of the Lindsay tribunal report in the coming weeks.
