Five leading members - including the chairman - of a health watchdog group have resigned after the rug was pulled on plans to make it an independent organisation.
Deputy city mayor Councillor Rory Palmer described the situation as a complete debacle and said he was concerned at how patients' interests are now being protected in the "organisational shenanigans."
The resignations came after Voluntary Action Leicester (Val) said it would not hand over the contract to the newly established Healthwatch Leicester Ltd.
Karen Chouhan, who was appointed chairman of Healthwatch Leicester in January, said: "I am very disappointed. It has been almost a year's work to make Healthwatch a separate organisation a reality and at the last minute Val would not give up the contract.
"We wanted a separate body because as it stood Val had the last say on everything.
"It is difficult to chair an organisation you don't have any control over. There was no point in having a board with no powers.
"A lot of people have been left bitterly disappointed over what has happened."
Mr Parkinson added: "I have invested a lot of my life in establishing Healthwatch.
"The general view early on was that we should enable it to be independent so it was a real disappointment to have the rug pulled at the 111th hour.
"We have no idea why Val couldn't agree. At no time before that did anyone suggest any problems."
Minutes of a Healthwatch meeting on September 24 record that Age UK Leicester and Leicestershire had agreed to provide office accommodation to the independent organisation.
It was also agreed to set up a bank account and appoint auditors.
The decision not to hand over the contract came after a meeting of the Val board a few weeks later.
Coun Palmer, who heads the city's health and well being board, said it was had always been the intention for Healthwatch to be an independent organisation and city council officers had spent "significant time and effort" to get resolution.
He added: "It is a very unfortunate state of affairs where organisational shenanigans is getting in the way.
"A very real consequence is that there is now no Healthwatch representative - apart from an officer - at the health and well being board."
Coun Palmer tribute to Ms Chouhan and Mr Parkinson.
He said: "They have put a huge amount of effort into getting Healthwatch running and making sure it is doing its job
Karen Chouhan, chairman of Healthwatch Leicester, has stepped down along with previous interim chairman Philip Parkinson, Steph Chapman, Surinder Sharma and Ballu Patel, who is also a member of the Leicester Mercury Patients' Panel.
A spokesman for Val told the Leicester Mercury that: "After receiving the full information about what the novation (handing over) of the Healthwatch Leicester contract meant for the successful delivery of the service for local people, including seeking legal advice, the Val board decided it was in patients' best interests not to novate the contract.
"The Val board remains committed and dedicated to ensuring a successful Healthwatch is delivered for the people of Leicester as Val has proven to do in Leicestershire.
