The council's general manager David Farmer revealed yesterday that the matter related to "inappropriate procurement practices" - or inappropriate handling of council supplies.

He also indicated that the employee had been suspended during an investigation by the council's internal ombudsman, before the decision was made to dismiss them.

But he declined to comment on the value of supplies to which the allegations related, noting the investigation was ongoing.

Although the investigation is being conducted by the council ombudsman, the organisation is also liaising with the Independent Commission Against Corruption and police.

"Of course it is disappointing that this occurred, but in an organisation of more than 1000 people, sadly over time incidents like this will arise," Mr Farmer said.

"We want to make sure we have a culture in place where any misconduct is reported and dealt with swiftly. This example sends a clear message to staff and the community that we will not tolerate any form of corrupt or dishonest behaviour."

Rumours of the dismissal started circulating within the council early last week. Staff working closest to the employee were formally notified of the dismissal at a meeting on Friday, while other staff across the organisation found out via a message from the general manager.

The Mercury understands the employee was not a manager.

The action comes only a month after the council adopted a new fraud and corruption prevention policy and a year after a professional conduct co-ordinator (ombudsman) was appointed.

In October last year, ICAC handed down 27 corruption prevention recommendations after Commissioner Jerrold Cripps found an unprecedented level of corruption existed within the council, spanning five tiers of local government.

He found that former general manager Rod Oxley had created an environment that bred corruption.

Mr Oxley, planner Beth Morgan and managers Joe Scimone and John Gilbert were among 10 individuals found by the ICAC to have engaged in corrupt conduct.

Commissioner Cripps recommended criminal charges against Ms Morgan and Mr Scimone, but not for Mr Oxley and Mr Gilbert.