The NSW corruption watchdog is to tender details of potentially explosive phone intercepts that prompted its investigation of Crown Prosecutor Margaret Cunneen at a parliamentary inquiry preparing to grill its commissioner, Megan Latham, over the episode.
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The sensational development, 48 hours before the highly anticipated public hearing, signals the Independent Commission Against Corruption is hitting back at a media campaign to discredit Ms Latham and the agency over its aborted attempt to investigate Ms Cunneen.
The ICAC on Tuesday sent what is being described as a "huge" volume of material to the public inquiry, before which Ms Latham and other senior staff are set to appear on Thursday.
The inquiry is being held after the Inspector of the ICAC, David Levine, issued a scathing report on the agency's conduct in its pursuit of Ms Cunneen over allegations she attempted to pervert the course of justice.
The ICAC's submission is understood to say it intends to tender the transcript of telephone intercepts carried out by the Australian Crime Commission in 2014 which captured Ms Cunneen discussing a traffic accident involving her son's girlfriend, Sophia Tilley.
The ACC is believed to have been at the time targeting a tow truck driver alleged to be involved in organised crime.
The tow-truck driver is understood to have passed his phone to smash repairer George Kharadjian, who discussed the accident with Ms Cunneen, who is a friend.
It has been reported that a second conversation between Ms Cunneen and Mr Kharadjian occurred the next day.
The ACC passed details from the telephone conversations on to the ICAC, stating: "DPP Prosecutor possibly involved in corrupt conduct."
The ICAC began investigating allegations Ms Cunneen advised Ms Tilley to fake chest pains to avoid a breath test after the accident.
Ms Cunneen has since admitted to discussing "fake chest pains" with Mr Kharadjian. But both have insisted Ms Cunneen was joking and the phrase was a play on words referring to Ms Tilley's breast implants.
According to the ICAC, Ms Tilley admitted to drinking alcohol before the accident, in which she was not at fault. However, she later recorded a zero blood alcohol reading.
The transcript of the telephone conversations have never been made public.
The ICAC's last-minute submission to the inquiry creates a dilemma for the members of the parliamentary oversight committee conducting the inquiry, which will meet on Thursday morning to decide on its public release.
It is understood there are concerns about whether members of the committee, chaired by Liberal MP Damien Tudehope, will have had adequate time to digest the material before making the decision.
The ICAC was forced to abandon its investigation of Ms Cunneen after she successfully challenged its jurisdiction in the High Court.
NSW Solicitor General Michael Sexton later said no prosecution should be brought after the ICAC passed its investigation material onto the Director of Public Prosecutions for consideration.
Ms Latham clashed with the parliamentary committee last year when she refused to answer questions about the Cunneen investigation, arguing the matter was beyond the committee's powers.
