A former director at the Department of Human Services was actively discouraged from raising concerns about the robodebt scheme with her deputy secretary, she told the robodebt royal commission.
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Tenille Collins, a former director at the Department of Human Services claimed deputy secretary Malisa Golightly told her she "was not a very good public servant".
"She did threaten me numerous times with, you know, 'You'll be lucky if you have a job by the end of the week'," Ms Collins said.
Ms Golightly has since died.
The robodebt scheme unlawfully claimed $2 billion in payments from 433,000 social welfare recipients between 2015 and 2019 by comparing reported fortnightly income with annual pay data from the tax office.
People who failed to respond to Centrelink letters within 21 days were automatically issued with a debt.
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Ms Collins also told the commission she had authorised this process to be "switched off" in December 2016, and it remained off until late 2017.
She said she had to "own up" to the decision to Ms Golightly in March 2017 and became emotional as she told the commission: "Ms Golightly was furious.
"My recollection is for about the next hour she screamed at me irrationally, is the only way I could describe it."
Commissioner Catherine Holmes raised whether Ms Collins had ever complained to then-secretary Kathryn Campbell.
"I didn't make a complaint about Ms Golightly's behaviour at the time, it's something that I feel embarrassed about," she said.
"I think if I'd had it in my mind to complain, I would have been completely comfortable going to Kathryn Campbell. I always found her quite good to deal with, she was very supportive of staff."
The royal commission will continue next week with Ms Campbell set to appear on Tuesday.
Former prime minister Malcolm Turnbull will face the commission on Monday.