Paul Barker will stay on as Chairman of Victoria’s Transport Accident Commission (TAC) despite resigning as deputy chairman of WorkSafe Victoria in protest at the appointment of CEO Denise Cosgrove.

“The minister and I have discussed it and I’m staying in my current position,” Mr Barker told insuranceNEWS.com.au. “The TAC continues to run a very important scheme for the state.”

Mr Barker quit WorkSafe last month following Ms Cosgrove’s appointment. He had recommended giving the position to Ian Forsyth, who acted as CEO following the resignation of Greg Tweedly in July.

Victoria’s Assistant Treasurer Gordon Rich-Phillips disagreed and put forward Ms Cosgrove, who was GM Claims Management with New Zealand’s Accident Compensation Corporation (ACC). The ACC recently faced criticism for inadvertently disclosing private information on 6700 claimants, including rape and incest victims, then offering them money to remain silent about it.

Ms Cosgrove was caught up in the issue, saying she released “technically correct” but “cute” information denying the ACC tried to gag rehabilitation providers.

Reports of an email sent by Mr Barker to WorkSafe colleagues explaining his resignation have been published.

“You are fully aware of the governance issues surrounding the appointment of the next… chief executive and the minister’s decision to appoint the [external] candidate, notwithstanding the clear and obvious risks involved with that appointment,” he wrote.

“These governance and risk issues strike at the very heart of the board’s accountabilities and responsibilities. Given the minister and I have fundamentally opposing views regarding corporate governance and the board’s role in the appointment of [the Victorian WorkCover Authority’s] next CEO and the management of strategic and operational risk, I decided I could not continue on the board.”

Mr Barker has confirmed the contents of the email to insuranceNEWS.com.au.

Mr Rich-Phillips did not ultimately appoint Ms Cosgrove. A selection committee including Mr Barker and another WorkSafe board member, plus two State Treasury nominees, was deadlocked. The three remaining WorkSafe board members then stepped in to support her.