The Independent Broad-based Anti-corruption Commission has launched an investigation into V/Line chief executive officer James Pinder, prompting his suspension.
Transport Minister Ben Carroll on Thursday said his department had advised him of the investigation on Wednesday night.
“On the basis of that advice, I directed the V/Line Board to immediately suspend Mr Pinder, while IBAC carries out its investigation,” he said in a statement.
“Nick Foa, currently the Head of Transport Services at the Department of Transport, will act as V/Line CEO while a longer-term arrangement is put in place. V/Line services will not be affected, and will continue to operate as scheduled.”
In an email informing staff of the suspension, V/Line board chair Gabrielle Bell assured staff that “we will do everything we can to support you and minimise the disruption that this event has on the organisation”.
“We know this news will be very unexpected and unsettling for everyone”, she wrote.
The corruption watchdog has confirmed it is “investigating matters related to the Department of Transport”, but has not provided any further details.