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ABC News
ABC News
Politics
By James Carmody

Public service executive sacked amid $25m corruption allegations

Paul Whyte was released on bail after his initial court appearance.

An assistant director-general of WA's Department of Communities, who is at the centre of a multi-million-dollar corruption scandal, has been officially sacked.

Paul Whyte, 56, was last week charged with two counts of official corruption over allegations he falsified invoices to steal millions of dollars of public funds over several years.

Mr Whyte was temporarily still receiving his $240,000 annual wage while he was suspended on full pay.

But a WA Government spokesman has confirmed his employment was terminated late on Friday afternoon.

Premier Mark McGowan said earlier this week Mr Whyte's continued pay had been due to a legal technicality.

"Apparently under the law there's a one-week requirement before such time as that can happen, so we have the law to contend with and that means on Friday his pay would be stopped," he said.

It is understood Mr Whyte remains in hospital following a non-suspicious incident at his home on Sunday which left him seriously injured.

When the charges were initially announced, it was alleged Mr Whyte stole $2.5 million, but police subsequently revealed in court they were investigating whether up to $25 million was taken over more than 10 years.

A friend of Mr Whyte's, 43-year-old Jacob Daniel Anthonisz, has also been charged. He is not a public servant.

The men are accused of creating false invoices and then transferring the money into company bank accounts before withdrawing it for personal use.

That included buying horses and a horse stud in New Zealand.

The court was told each of the alleged transactions was just under $50,000 as to avoid the requirement for higher approval within the Department of Communities.

The funds were allegedly paid to two companies, Quadrant Analytics and iValuate, which were not approved for the work purportedly carried out.

The court heard police were investigating whether false invoicing totalling $20-25 million had taken place going back to 2008, associated with Mr Whyte's previous roles as general manager of the Department of Housing and executive director of property registry agency Landgate.

The prosecution unsuccessfully opposed bail for both men, arguing Mr Whyte was a flight risk and could influence current and former employees.

The court was told the pair's long-time friendship extended to ownership of racehorses.

Earlier this week, Racing and Wagering WA said it was withholding payment of any prizemoney to the pair or their immediate families in light of the charges.

The Premier has indicated there could be announcements next week relating to the investigation into the Department of Communities and also changes to its governance.

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