Just days after being told she would have to reapply for her job as the head of the NSW corruption watchdog, Megan Latham has quit.
Ms Latham, whose term was due to end in 2019, was given no guarantee she would be appointed as one of three new commissioners set to take over the Independent Commission Against Corruption under the Baird government's plans to radically overhaul the agency.
Despite claims Ms Latham was effectively being forced out of the top job as payback for her investigation into the Liberal Party donations scandal, the changes were swiftly passed through parliament last week.
Tendering her resignation on Wednesday, Ms Latham said she was grateful for the opportunity to have worked at ICAC.
"I am particularly privileged to have observed first-hand the skill and dedication of the commission's staff who deserve great credit for the exposure of corruption in this state," she said in a statement.
Premier Mike Baird thanked Ms Latham for her service to the community.
"We respect her decision not to apply for one of the three new commissioner positions," he said in a statement.
The government is "establishing a panel to conduct an extensive, merit-based search to secure three world-class individuals" for ICAC, the premier said.
The reforms also would not impede any current ICAC investigations, including the notable Operation Credo which drew in former Labor minister Eddie Obeid and federal Liberal senator Arthur Sinodinos, Mr Baird added.
Opposition Leader Luke Foley said Ms Latham's resignation marked "the lowest point" in the 28 years since ICAC was set up.
"We've hit rock bottom. An ICAC commissioner has been forced from office by the premier of the state because the commissioner had the temerity to investigate corruption inside the governing party of the state," he told reporters in Sydney.
The Baird government was sending a strong message to any future ICAC commissioner, Mr Foley said.
"The message is ... do not dare investigate inside the governing party of the state, that's why today is the lowest point," he said.
The government's reforms were part of 35 recommendations made by the bipartisan parliamentary committee looking into ICAC.
It followed Ms Latham's botched investigation into allegations crown prosecutor Margaret Cunneen attempted to pervert the course of justice by telling her son's girlfriend, Sophia Tilley, to fake chest pains to avoid a police breath test after a 2014 car accident.
ICAC was forced to abandon the inquiry after the High Court ruled it was outside its jurisdiction.
Ms Latham will return to the Supreme Court after she steps down from the chief commissioner's position on November 30.
ICAC Assistant Commissioner Reginald Blanch QC will serve in her place until the new appointments are made next year.
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