EDS: pls note language in 18th par.
Former NSW State Emergency Services deputy commissioner Tara McCarthy was fired after doing her job too well and alleging to her boss that his good mate had engaged in potentially corrupt behaviour, an inquiry has heard.
During the past week Ms McCarthy, fellow SES deputy commissioner Steve Pearce and commissioner Murray Kear were the focus of a NSW Independent Commission Against Corruption (ICAC) inquiry.
It is investigating, among other things, whether Ms McCarthy was sacked in reprisal for alleging corruption against Mr Pearce to their boss, who the ICAC heard was good mates with Mr Pearce.
Ms McCarthy was hired in November 2012 to ensure contracts complied with government standards, to review overtime expenditure, which was nearing $1 million annually, and to make sure travel allowances and credit cards weren't being rorted.
She quickly discovered a fellow deputy commissioner, Mr Pearce, had granted the then finance and fleet director about $60,000 of overtime over 13 months and had used the organisation's credit cards to pay for personal modifications to his work car.
He allegedly purchased roof racks to carry surfboards and installed electric brakes to tow his trailer, which he took on several joint family camping trips with Mr Kear.
Mr Pearce also signed two generous consultancy contracts, worth about $400,000 in total, without following proper procedure or putting them out to tender and had run up about $11,000 of questionable expenses.
Ms McCarthy, hired to investigate this kind of conduct, took her concerns about Mr Pearce to her boss, Mr Kear.
And this might have been her biggest mistake.
Mr Kear and Mr Pearce were close friends, the ICAC heard.
They had worked together at Fire and Rescue NSW, had taken family camping holidays together and had known each other since at least 2008.
Both men also belong to the same Freemason lodge and Mr Kear awarded his friend a rise with back pay a month after placing him on a performance review program.
Mr Kear had hired Mr Pearce but did not think it necessary to declare a conflict of interest at the time, the ICAC heard.
After reviewing Ms McCarthy's allegations, Mr Pearce found no need for further investigation.
But he believed there was a "values" clash between his deputies," the ICAC heard, and he decided "one or both had to go".
Despite acknowledging in writing that "there were never any competence or performance issues" with Ms McCarthy and agreeing she had done an outstanding job in her nine months at the SES, Mr Kear decided to sack her.
During the course of the hearing, offensive text messages summarising Mr Pearce's view of Ms McCarthy were tendered.
A text message forwarded by Mr Pearce to Mr Kear described her in crude terms, including referring to her as a "bitch", and said she would "get what she deserves".
On Friday, the final day of the hearing, Mr Kear was accused by ICAC commissioner David Ipp of trying to throw the corruption watchdog off his mate's scent.
The inquiry heard Mr Kear had written to the ICAC shortly after firing Ms McCarthy, saying he expected her to allege corruption against Mr Pearce.
But, Mr Kear had added, Ms McCarthy's claims had been examined and closer scrutiny wasn't warranted.
Mr Ipp suggested the purpose of the letter, written in May, was to "cut ICAC off at the pass".
"It had the effect of making ICAC believe there was no point in investigating," he said.
"That was your intention, wasn't it? Your intention was to bring ICAC under the impression that there was nothing to investigate."
Mr Kear denied it, saying he thought there was no corrupt conduct.
Lawyers from all parties will file written submissions to the ICAC by early next year.
