The Vancouver Island Health Authority has cancelled a lucrative contract with the husband of one of Christy Clark's close friends after it was revealed the job was awarded without the usual tendering process.

Stewart Muir was not required to go through the usual public proposal procedure before he was handed a $162,000 one-year contract as the health authority's vice-president of communications. Muir, a former editor at the Vancouver Sun, is married to Athana Mentzelopoulos, the premier's deputy minister for corporate priorities and a bridesmaid at her wedding.

Clark denies any political interference in the hiring process.

"VIHA made the decision, they needed to follow guidelines, they say that they didn't follow guidelines, they've corrected it. I had no involvement with any of it on either end," she told CTV News.

"People make mistakes."

But NDP health critic Mike Farnworth says the premier should be embarrassed.

"It certainly looks like cronyism," he said. "It sends a very bad message to the public, but that's where this government is at."

Health authority CEO Howard Waldner has admitted to the mistake, and the position will now be open to the public.

"Upon reflection and in the interest of transparency, VIHA has cancelled the contract. We want to emphasize this decision in no way reflects the qualifications of the contractor, but the need to ensure due process is followed," a VIHA statement reads.

The health authority says that it will begin the regular tendering process to find a replacement soon, beginning with a request for proposals.

Health Minister Mike de Jong says Muir's appointment broke the rules of transparency at VIHA.

"The procedures in place to ensure there is a fair competition weren't entirely followed," he told CTV News.

He said he's "still gathering facts" and not ready to comment on whether Waldner should step aside from leadership at VIHA.

This isn't the first time the BC Liberals have come under fire because of hiring procedures. Clark was also criticized for creating a six-figure job for campaign supporter Pamela Martin, a former CTV News anchor.

And earlier this year, Muir was handed another lucrative contract: ghost-writing the report into the Stanley Cup riot.

With a report from CTV British Columbia's Jim Beatty