Guardsman Michael Roland, who served with the 1st Battalion Grenadier Guards, on 27 April in Helmand province, he was 22.
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"This is going to cost LOROS thousands of pounds which could have been spent caring for terminally ill people."
Stella Manzie will take over after running the council until a permanent chief executive is found.
It comes after months of protests following United Lincolnshire Hospitals NHS Trust's (ULHT) decision to close the unit overnight.