The NSW State Emergency Service is under investigation by the corruption watchdog amid allegations it misused millions of dollars of funds.
Deputy Commissioner Steven Pearce has been stood down pending the outcome of an inquiry, Fairfax Media reports, and officers from the Independent Commission Against Corruption (ICAC) have raided the SES headquarters in Wollongong.
Claims of credit card misuse and overtime rorts by senior management are understood to be among the matters being investigated, Fairfax says.
ICAC is also believed to be probing the sacking of former deputy commissioner Tara McCarthy, after she raised concerns about the way the service was spending money.
An SES spokeswoman on Monday confirmed the volunteer-based rescue organisation was under investigation by the ICAC.
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"Because it's an ICAC investigation we're co-operating with them and helping them with that but it's ongoing so we can't make any comments," she said.
She also declined to comment on whether Mr Pearce had been stood down.
The NSW Public Service Association (PSA) said Ms McCarthy had been sacked after raising questions about practices within the SES.
"Prior to Deputy Commissioner McCarthy going to ICAC, I was aware she had raised probity issues inside the SES and I believe the fact she was pursuing these matters was why she was sacked," PSA NSW general secretary Anne Gardiner told AAP.
Ms Gardiner said Ms McCarthy was "effectively given half an hour's notice" to pack everything and leave the SES.
She said she could not detail the matters Mr McCarthy had raised because they were the subject of an ICAC investigation.
