The Serious Fraud Office says it won't investigate a member of the former Hawkes Bay District Health Board, Peter Hausmann, for fraud.
In May, the office received a complaint that Mr Hausmann, who is also the chief executive of Healthcare New Zealand Limited, used his position on theboard to influence the awarding of health contracts for his companies.
But Serious Fraud Office director, Grant Liddell says there is no evidence Mr Hausmann deceived the board or that he colluded with the board's chief executive or other board executives.
And he says there is no evidence of bribery or corrupt behaviour.
With no basis for investigation, Mr Liddell says the file will now be closed.
In a statement issued to Radio New Zealand, Mr Hausmann said the decision came as little surprise.
Mr Hausmann said he has been the subject of false claims, innuendo and "deeply damaging misreporting" for more than a year.
Former board member Diana Kirton who laid the complaint, says she's disappointed. But she stands by her decision to lay the complaint, saying she did so out of "true concern for public money".
A spokesperson for Health Minister, David Cunliffe, would not comment.