The official charged with overseeing the troubled strata sector in NSW has been stood down over allegations he failed to adequately disclose shares in a large property services firm.
John Minns has been forced to step aside from his role as NSW Strata and Property Services Commissioner following an ABC Four Corners expose of overcharging and other problems within the strata industry.
He told the program, broadcast on Monday night, there was "no question" governments needed to do a better job of regulating strata operators, which manage services for apartment buildings nationwide.
But it was also revealed he held more than 500,000 shares in Independent Property Group, which provides strata services, through a family trust.
Mr Minns, who was appointed to the commissioner's role in October 2023 but previously held a similar post, said he was not obliged to declare the holding publicly and suggested the government was aware of the shareholding.
However, NSW Department of Customer Service secretary Graeme Head told a budget estimates hearing on Tuesday he had indefinitely stood down the commissioner pending a formal investigation.
"I stood Mr Minns down ... to allow me to undertake a proper examination of the range of issues that were raised, some of which related to disclosures," he said.
"There are a number of issues to be tested."
The department confirmed Mr Minns had been absent from work since Monday but added that he had been providing full support to the review.
"The (department) considers governance of its employees of highest priority," a spokesman told AAP in a statement.
Mr Minns would continue to be paid his band-two executive salary while the investigation took place, Mr Head said.
"The default position is that they are stood aside on pay unless there are typically serious criminal allegations," he said.
Public-sector employees in the bracket are paid a minimum of $287,000.
Greens MP Cate Faehrmann pressed Building Minister Anoulack Chanthivong about why Mr Minns had been stood down now, given his explanation that the shareholding had previously been disclosed.
Neither Mr Chanthivong nor Mr Head would confirm when they were made aware of any disclosures.
The state government in June proposed a string of changes to strata laws following nearly 1000 complaints relating to agents within the sector in a five-year period.
They included tougher penalties for breaching disclosure requirements for commissions and stricter conflict of interest requirements.
Mr Chanthivong said an investigation into strata service providers was also under way.
The Real Estate Institute of NSW said the recent spotlight on a few unethical operators risked unfairly painting the broader strata management industry in a bad light.
"The vast majority of strata managers provide extremely valuable and professional services, outlined in their management agreements, in a highly effective, efficient, transparent and compliant way," chief executive Tim McKibbin said.
