HEALTH chiefs have launched a fraud investigation after a worker who stole from hospital canteen tills claimed other staff were ripping off the hospital too.

Valerie Riley, who stole while working in the restaurant at Queen's Park Hospital, blew the whistle on a "free lunch club" when she appeared in court.

Blackburn magistrates heard that certain people were favoured with either free or subsidised meals.

And after years of watching the number of "favoured" customers grow, the 44-year-old devised a system so she could pocket any of the nominal payments they made for lunches.

Riley, of Bedford Mews, Darwen, pleaded guilty to theft of cash from East Lancashire Hospitals NHS Trust.

She was made subject to a community supervision order for 12 months and ordered to do 120 hours community punishment.

Philippa White, prosecuting, said hospital bosses received an anonymous tip-off that someone was taking money from the till.

Covert surveillance cameras were set up in January and these showed Riley taking money from the till and placing it in her apron.

Mrs White said: "There is no way of proving how much money was taken before the cameras were put up. She said Riley took about £70 while the cameras were in place."

Michael Singleton, defending, said; "It was common practice for certain people to be provided with meals either free or heavily subsidised."

He said that around Christmas it was suggested Riley should pocket the token payments made by some people.

He said Riley was subject to a disciplinary hearing and expected to be dismissed.

Gary Graham, the trust's deputy chief executive, said: "We are continuing our own detailed internal investigations.

"We cannot comment on the allegations made by this member of staff as it may prejudice future investigations."