Mr Dawes denied telling Mr House that he would not be investigated if he resigned. But said because Mr House had then resigned, the investigation had not gone ahead.

Mr House, who was deputy director-general and a former senior political staffer in the ACT government, has left the directorate in bitter circumstances, unhappy with his treatment and the treatment of his partner.

His partner was appointed in December to a junior, three-month job in the office of International Engagement Commissioner Brendan Smyth. He was appointed by a three-member selection panel, with Mr Smyth as its chairman.

Mr Smyth has confirmed that he knew Mr House and his partner "were acquainted" but only became "aware of the extent of the relationship" after he was recruited.

The appointment appears to have led to a crisis in his directorate in the New Year, the leaking of information to Fairfax Media in January, and the resignation of Mr House that followed soon after. His partner has subsequently also resigned.

On Monday, top officials from the chief minister's directorate denied any pressure on Mr House to resign.

Asked at the hearing whether there had been "conversations where it was suggested" that Mr House or his partner should resign, public service chief Kathy Leigh said, "Not to my knowledge in relation to that specific question."

Head of corporate Sue Hall told the same hearing that the pair resigned had for "personal reasons".

Ms Leigh also said there had been no pressure on the selection panel to appoint Mr House's partner in December.

It is unclear what Mr House was to be investigated for, given no official has pointed to any problem with the appointment of his partner, but Mr Dawes confirmed in this exchange with Liberal Leader Alistair Coe on Tuesday that he had told Mr House he would be investigated:

Coe: "Did you state to the deputy director-general that an investigation was imminent unless a resignation was forthcoming?"

Dawes: "Definitely not."

... Coe: "Did you state to him that an investigation was imminent?"

Dawes: "Correct. Out of due respect to him and that role, I suggested that there would be an investigation to be undertaken ... I did not tell him that if he resigned we would not conduct the investigation. I did him about the investigation. I explained how that would take place ..."

Coe: "Was the investigation initiated?"

Dawes: "No, because he resigned."

Mr Dawes said he had talked with Mr House over some months about his future in the public service, before the issues arose with his partner - because "he wasn't enjoying his role in the ACT government, it's not suited to everyone".

He had suggested to Mr House that he review his position over the Christmas break.

Mr House is a former chief of staff to Labor treasurer Ted Quinlan. Before he was catapulted into the senior role in the pubic service, he was head of Clubs ACT, where he lobbied hard on issues such as poker machines.