NSW anti-corruption watchdog commissioner Megan Latham quits

The head of the NSW anti-corruption watchdog has resigned following last week's passage of legislation to restructure the independent body.

Independent Commission Against Corruption head Megan Latham has stepped aside after the body was restructured to provide three commissioners instead of one.

Although she had two years remaining in her term, Ms Latham was informed she would need to reapply for her job.

"I am grateful for the opportunity to have worked at the Commission," she said in a statement released Wednesday.

"I am particularly privileged to have observed first-hand the skill and dedication of the Commission's staff who deserve great credit for the exposure of corruption in this state."

Critics said the restructure would undermine the watchdog's independence and effectiveness.

Opposition Leader Luke Foley described the legislation, which swept through parliament last week, as a blatant attempt to sack Ms Latham for her role embarrassing the Liberal Party over a donations scandal that saw 11 MPs sidelined.

Premier Mike Baird pushed the reforms through in one day. Source: AAP

"This is the lowest point in several decades when it comes to the fight against corruption," Mr Foley said.

"It just makes it clear that no commissioner or commissioners will ever have the guts to inquire into any corruption inside the governing party of the state, whether it's a Labor or Liberal government, because Commissioner Latham was terminated for doing so."

But the legislation, which was introduced in parliament last Tuesday, cleared both houses in a single day.

Premier Mike Baird defended the reforms, arguing they will: "deliver a stronger and fairer anti-corruption watchdog".

"We are implementing the recommendations of a bipartisan committee that was unanimous in its recommendations that were supported by Labor," Mr Baird told ABC radio.

"They have conveniently forgot that they were the ones that actually supported this."

Yet the reforms have alarmed two former ICAC chiefs, Anthony Whealy and David Ipp, who said the move will severely weaken the watchdog.

Mr Whealy said the move would likely trouble the electorate.

"Now I don't think Mr Baird's corrupt, but I think the perception that he's paying her (Ms Latham) back for some sort of attack on the Liberal Party will be very apparent to the community," he told the ABC.