Health Secretary Jeremy Hunt said he is "extremely concerned" by the lack of accountability at NHS Croydon, following the £28m blackhole revealed in its budget.

A damning report into the financial mismanagement concluded there had been a deliberate cover-up after Croydon Primary Care Trust (PCT) reported a £5.54m surplus in its 2010/11 budget when it was actually £22.4m in debt.

The Joint Health Overview and Scrutiny Committee called on Mr Hunt to intervene after former chief executive Caroline Taylor, refused to answer crucial questions.

Her colleagues former finance director Stephen O'Brien and interim deputy director of finance Mark Philips also failed to give evidence to the inquiry.

Speaking in the House of Commons this morning, Gavin Barwell, MP for Croydon Central, asked Mr Hunt: "Does the Secretary of State agree that is unacceptable, that NHS managers must be held to account and that given that two of these individuals still work in the NHS, does he have the power to compel them to give evidence."

Mr Hunt replied: "Accountability is extremely important and local authorities can require members of employees of local health service commissioners to appear and answer questions.

"NHS organisations and individuals should co-operate with that.

"So I am extremely concerned by what he [Mr Barwell] said. He knows I have received a report on this from the Joint Health Overview and Scrutiny Committee for six south-west London boroughs and I will be responding shortly."

In an interview with the Croydon Guardian, Ms Taylor said: "There was an investigation conducted by NHS London which reported about a year ago now.

"I was interviewed as part of that investigation and I told them everything they wanted to know and everything I know about the finances in Croydon.

"I do not think I have got anything to add to what I've said at that time."

Responding to Croydon South MP Richard Ottaway's claims she should be questioned under oath, she added: "People say all sorts of things, don't they?

"There was an investigation. I cooperated fully with it."