A HEART and blood specialist at Basildon Hospital has been arrested on suspicion of carrying out a fraud worth more than £1million.

John Mulholland was arrested by three detectives at the hospital, in Nethermayne, Basildon, as he arrived to attend a meeting.

Mr Mulholland – a respected and internationally renowned perfusionist – is under suspicion of defrauding the hospital of potentially millions of pounds over several years.

He is employed at the hospital and heads a ten-strong team.

It is alleged that when he should have been working at Basildon and carrying out specialist procedures, he was, instead, working privately, through his company, for at least three other NHS Trusts.

It is also alleged he earned hundreds of thousands of pounds for this extra work, while Basildon Hospital was also paying him, despite his absence.

Detectives were able to track Mr Mulholland’s movements through the hospital’s electronic security system.

When he claimed to be at Basildon Hospital the system – which records staff entry to the car park and building – it is alleged he had never arrived.

Police were called in by NHS – the health service’s fraud investigation department – after it is understood another hospital employee contacted police.

A spokeswoman for Essex Police confirmed the 39-year-old was arrested last Wednesday, on suspicion of conspiracy to defraud, and false accounting.

Officers searched Mr Mulhol-land’s home in Poplar, East London, before questioning and bailing him.

He will remain on bail until next year, while police investigate.

A spokeswoman for Basildon Hospital said: “The trust instigated an investigation and the person in question has been suspended, pending the outcome.”