A parliamentary committee has dumped a draft recommendation that the NSW corruption watchdog should only be allowed to hold public hearings if three commissioners agree, after push back by Labor MPs.
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Instead, in its report tabled in parliament on Thursday, the committee on the Independent Commission Against Corruption recommends a majority decision should suffice.
But the recommendation to replace the current single ICAC commissioner with a three commissioner model has been criticised by the NSW Greens, which did not have a representative on the committee.
Greens MP for Balmain, Jamie Parker, said the recommendation "is clearly aimed at diluting the effectiveness of the current commissioner, adds unnecessary bureaucracy, and threatens the likelihood of public hearings which are an important deterrence to corruption".
The change was proposed in a submission to the committee by the NSW Department of Premier and Cabinet.
It was criticised by current ICAC commissioner Megan Latham who said it would increase costs and leave "a couple of people sitting around twiddling their thumbs".
The committee has been examining a report on the watchdog's powers by the Inspector of the ICAC, David Levine, handed to Premier Mike Baird in May.
It followed ICAC's aborted inquiry into whether Crown Prosecutor Margaret Cunneen attempted to pervert the course of justice by counselling her son's girlfriend, Sophia Tilley, to fake chest pains after a car accident to avoid a breath test.
The ICAC aborted the inquiry after the High Court ruled it was outside its jurisdiction and the NSW director of public prosecutions did not proceed with charges.
As Fairfax Media revealed on Tuesday, the committee has rejected Mr Levine's principal recommendation that public hearings be abolished "to prevent the undeserved trashing of reputations".
It has also rejected his recommendation to introduce an exoneration protocol to allow people found corrupt by ICAC but who are not later convicted on criminal charges to have the records "expunged".
But the committee, chaired by Liberal MP Damien Tudehope, said a move to a three person commission - with a chief commissioner and two part-time commissioners - would "balance" Mr Levine's concerns.
Since its establishment in 1989 the decision to hold a public hearing has been made by a single ICAC commissioner.
However, the report argues such decisions have "grave consequences for the individuals and it is essential they be given appropriate weight".
Opposition leader Luke Foley said welcomed the recommendations which he said would ensure the watchdog "will be able to continue as a robust and effective anti-corruption agency".
He said if the three commissioner model is adopted then Ms Latham should be chief commissioner.
The government will respond after the report is considered by cabinet. ICAC declined to comment.
