09/19/2013 01:53 EDT | Updated 11/19/2013 05:12 EST

Deal reached over salaries, payouts at Winnipeg personal care homes

WINNIPEG - A company that runs two personal care homes in Winnipeg has agreed to recoup a controversial payout to its former chief executive officer.

Bethania Group was criticized in a provincial audit last year, which found Ray Koop was allowed to retire, start collecting his pension and get rehired the very next day.

The audit also found Koop was given a pre-retirement payout worth half his $160,000 annual salary.

In March, the Manitoba government ordered Bethania Group to end the CEO's contract and recoup the money, but the company's board of directors balked.

Health Minister Theresa Oswald says an independent review has been completed and Bethania's board has agreed to comply with all its recommendations.

She says that includes cancelling the former CEO's contract and recouping his payout in full.