In a statement released late on Tuesday afternoon, interim CEO Janet Dore wrote 'the director of innovation and organisational improvement... has advised me he will not be applying for any of the director positions, and has chosen instead to move on from the organisation at the end of July.'

Ms Dore thanked Mr Cahill for his professionalism and his contribution to the City of Ballarat.

In her critical report into recruiting at the City of Ballarat, released in May, Ombudsman Deborah Glass stated appointments made by Ms Linley while she was CEO were tainted by a conflict of interest.

While not referring to the recruited officers by name, Ms Glass's report alleged an 'Officer D' and Ms Linley had maintained a working and mentoring relationship from her time at Northern Grampians Council, that Officer D was advanced despite lacking the qualifications of other candidates, and that Ms Linley did not declare a conflict of interest in D's appointment when she should have.

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With regard to another officer, 'Officer E', the ombudsman found he received preferential treatment in the selection process, despite arguing his suitability because of his 'leadership style, past experience, qualities and cultural fit.'

'It is difficult to accept this submission given the two other shortlisted candidates had superior qualifications and significantly greater experience at the relevant level,' Ms Glass's report found.

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