Ms Peggie also faced four allegations of gross misconduct, including two alleged failures of patient care, but she was cleared on Monday after NHS Fife admitted there was insufficient evidence.
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Health secretary Neil Gray was questioned about the ongoing tribunal on a visit to Glenrothes.
The tribunal is in its 13th day, with Friday’s witnesses including Dr Elspeth Pitt, Consultant in Emergency Medicine, and Louise Curran, Senior Charge Nurse.
Asked by The Courier if he still had confidence in NHS Fife, Mr Gray replied: “Of course I do.
“NHS Fife has got an important role to play in ensuring they are delivering NHS service to the people of Fife.
“I have confidence in their ability to do so.
“I’ve got no further comment to make on an ongoing employment tribunal process.
“That needs to be respected and allow the process to take its course.”