Eman Sharobeem used public money for cosmetic surgery, the Independent Commission Against Corruption (ICAC) has heard.
The Commission was told Ms Sharobeem, formerly the chief executive of the Immigrant Women's Health Service and an Australian of the Year finalist, claimed $11,000 of cosmetic surgery as a work expense, including botox and other treatments.
Under cross examination, she denied her actions were dishonest.
"That was a mistake," she told Ramesh Rajalingam, counsel assisting the commission, who replied: "You were being dishonest".
"No, that's a big word," Ms Sharobeem said.
While Ms Sharobeem said she had been 'clumsy', she maintained she had been set up be her former colleagues.
"I definitely made mistakes," she said.
"I did something wrong. I didn't keep records and that's why I claimed so much."
She said credit card receipts submitted for reimbursement and marked "declined" were "evidence of a setup".
Other evidence presented against Ms Sharobeem on Monday included the use of the fake names, including Emma Adley and Emy Adel, to claim salaries totalling $100,000 between 2014 and 2015.
These claims included hours allegedly worked on Easter Monday and Anzac Day, as well as four different claims for one day.
Evidence presented to ICAC last week showed she allegedly used public money to purchase thousands of dollars of goods and services including cars, furniture and jewellery.
Monday was the fifth day Ms Sharobeem has been in the witness stand and she will be required for at least one more day of questioning before the inquiry moves on to other witnesses.
The inquiry has been adjourned and will resume on June 13.
