Manager got payout says MP

National MP Nick Smith is challenging the Government over a rumoured payout for the former head of the Weathertight Homes Resolution Service.

The Department of Internal Affairs confirmed yesterday Lisa Ferguson, the former national manager of the service which was set up to help hundreds of claimants who bought leaky homes, was no longer employed.

"I would bet money there's been a golden handshake," Dr Smith said.

"I challenge Chris Carter to come clean and confess the rumours within the department which are that she has been given tens of thousands of dollars."

Dr Ferguson was replaced by acting national manager Nigel Bickle last month when the service switched to the jurisdiction of the Department of Building and Housing from Internal Affairs.

She remained employed by Internal Affairs after the transfer.

Internal Affairs spokesman Colin Feslier said the department and Dr Ferguson had "resolved their differences". He confirmed she was no longer employed but would not elaborate.

He would not say whether she received a payout or reveal the terms of her employment.