Health chiefs say the project should not be delayed
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An independent investigation is to be held into the tender process for a new clinical block at Guernsey's Princess Elizabeth Hospital (PEH).
The inquiry will look into why the Policy Council opted for a £27m tender - £2m higher than the lowest tender.
Health Minister Peter Roffey said he backed the review called for by the Public Accounts Committee.
Deputies have given the go-ahead for the PEH project, which is expected to be completed in 2009.
Mr Roffey said: "We've been desperately concerned over the last few days over the twists and turns this whole debate has taken.
"Many questions need to be answered and there is now going to be a full, independent investigation..."
But Mr Roffey added that the project should not be delayed.
The redevelopment of the site was named as the top capital priority in the States meeting on Wednesday.