Wellington, Jan 29 NZPA - A defiant Otago District Health Board boss has refused to resign in the wake of a multi-million dollar fraud scandal, and has challenged the Health Minister to sack him.

Health Minister Tony Ryall asked DHB chairman Richard Thomson to resign in a phone call from the Beehive last night.

But he refused and told Mr Ryall he should have the courage of his convictions and sack him and provide the public with reasons for doing so.

Mr Thomson said the minister said had listened to what Mr Thomson told him in a briefing a week ago on the $17 million fraud of the DHB by its former chief information officer Michael Swann and his friend and business associate Kerry Harford.

But he did not have confidence in him and wanted him to resign.

Mr Thomson told the Otago Daily Times it was clear to him several weeks ago that Mr Ryall wished to remove him and he felt that he was using the briefing last week as justification.

"It was a predetermined outcome well before he spoke to me."

Mr Ryall's office, when approached for comment last night issued a one-sentence statement: "I expect accountability throughout the public health system."

Swann and Harford are in custody awaiting sentencing next month.

NZPA WGT rq dj