Sidelined home affairs boss on full pay during probe

Department of Home Affairs secretary Michael Pezzullo is on full pay after standing aside. (Mick Tsikas/AAP PHOTOS)

A top government security official remains on full pay despite being asked to step down while an investigation proceeds into his leaked text messages to a Liberal powerbroker. 

Home affairs department secretary Michael Pezzullo remains on his full package of almost $915,000, the new acting secretary Stephanie Foster confirmed.

Her pay packet has also gone up while in the role due to higher allowances.

The new boss expressed her shock at Mr Pezzullo being stood down while the public service commissioner investigates his leaked texts.

"I want to start by acknowledging the significant shock all of us in the home affairs portfolio experienced ... when secretary Pezzullo was asked to step aside," Ms Foster told senators in her opening statement to a parliamentary hearing on Monday.

"(It's been) a difficult four weeks in the face of sustained and often distressing media reporting."

The leaked messages revealed Mr Pezzullo used a political back channel to two former Liberal prime ministers through powerbroker Scott Briggs to wield influence.

It included suggesting ministerial sackings and which MP should become minister of his department.

Ms Foster was also pressed on an $80,000 contract given to DPG Advisory, of which Mr Briggs became a partner in March 2020, to investigate a quarantine solution in 2021.

Labor senator Raff Ciccone asked whether Mr Pezzullo's previous evidence at Senate estimates that he “personally oversaw and managed” the contract meant he should have declared his relationship with Mr Briggs.

Ms Foster said the relationship between the secretary and the Liberal powerbroker went to the heart of the inquiry into the matter and she wasn't comfortable commenting on the matter given the ongoing investigation. 

"With the inquiry under way, we will defer to that process on these matters," she said. 

Ms Foster also declined to answer whether she had referred the matter to the independent National Anti-Corruption Commission in line with her responsibilities for the same reason.

The home affairs department is not conducting a separate inquiry but is supporting the public service commissioner's probe, she said.

Ms Foster said Mr Pezzullo regularly disclosed conflicts of interest but didn't confirm whether his relationship with Mr Briggs was disclosed due to the ongoing investigation.

The public service's policy states possible conflicts of interest include political affiliations and activities.

It is not suggested the messages show corrupt or illegal conduct but public integrity advocates have alleged Mr Pezzullo overstepped the required impartial nature of heading a government department.

Texts show Mr Pezzullo suggested now-opposition leader Peter Dutton should become the new home affairs minister the night before Scott Morrison took the prime ministership from Malcolm Turnbull in 2018.

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