Mr Perrottet on Thursday night accepted the resignation of his chief of staff Nigel Freitas,who took responsibility for what he said was an administrative error. Mr Freitas had worked with Mr Perrottet for four years. Icare is a workers'insurer funded by employers and is meant to be independent of the political process.
Secondments from government sector agencies such as icare are permitted and occur regularly. However,theHerald has been told the arrangements relating to Mr Yap and an administrative assistant were discovered on Thursday to have not been documented as required by regulations.
Subsequently,Mr Freitas terminated the secondment of the two staff members,who will continue to be employed by icare. But his role as chief of staff requires Mr Freitas to be responsible for all staff arrangements in the office,especially hiring,firing and remuneration.
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It follows ajoint investigation by theHerald,The Age and ABC'sFour Corners program into the nation's $60 billion workers'compensation system,which uncovered mismanagement in the NSW government-run icare and"unethical and immoral conduct"in Victoria's scheme,WorkSafe.
Since the investigation broke,Mr Perrottet has defended icare and praised the board and its executives."The icare team and the executive icare team do a superb job,"he said last week.
Earlier this week he said he would bring forward aplanned review of icare,headed by a retired Supreme Court judge.