UPDATE: THE boss of Orbost Regional Health, in Victoria, has resigned after her past including her qualifications were questioned.
Andrew Martin, of Orbost Regional Health, has confirmed Ashton Foley had offered her resignation, and it had been accepted by the board.
The move comes as speculation mounts police will called in to investigate the credentials of Ms Foley who was the whistleblower at the centre of corruption allegations against a West Australian regional hospital.
Late last year, the WA government ordered an independent inquiry into allegations of fraud and corruption at the privately run Peel Health Campus near Mandurah, south of Perth, which had been dogged by a string of accusations.
Operator Health Solutions WA repaid almost $1.8 million to the state's Health Department after allegations doctors were being paid cash bonuses for admitting patients.
Ms Foley made a series of explosive allegations to a parliamentary committee, which praised her for putting "the interests of the people of Western Australia above those of her own".
But in a bizarre twist, Ms Foley was forced to admit she had been arrested and jailed in the United States in 2008 over fraud and identity theft charges.
Neale Fong, the current Peel Health Campus chief executive, said the hospital now wanted criminal investigations launched into Ms Foley's qualification claims, which she made to both the parliament and her former employers.
Mr Fong said Ms Foley's claim of a doctorate from the New York Stern School of Business was false, as the school could find no records of her.
"Quite frankly we have been shocked at what has been unearthed. It was not a deliberate attempt to try and go and find material on Ms Foley. It kept coming out and will keep coming out," Mr Fong said.
"It is a serious offence to lie to a parliamentary committee. That is a matter for the parliament and the police to get involved in.
"We will be reporting this to the police, because she was employed at the Peel Health Campus under the misunderstanding she had these qualifications. It is a very serious issue when employers are lied to."
Records in the US show Ms Foley, under the name of Michelle Marie Foley, has an outstanding bench warrant in Georgia over charges of theft and identity fraud.
Ms Foley was this week due to give evidence to the WA government's Peel Health Campus inquiry, headed by former chief medical officer Bryant Stokes.
Mr Fong, the former director-general of WA's Department of Health, said the validity of the whole inquiry should now be questioned.
"We don't know what her motivation is other than she wanted to big-note herself and cause trouble," Mr Fong told Fairfax radio.
"One person has brought a lot of damage to the company, to the community and the hospital.
"Our company would be aghast if the testimony of a woman who will continue to be identified as having a 20-year history of deception and lies and causing havoc with companies (is used) ... we would be very disappointed and angry if this person's testimony is utilised."
The details of Ms Foley's charges have been passed on to WA's Public Sector Commissioner Mal Wauchope for investigation.