Internal Affairs Minister Brooke van Velden says Fire and Emergency broke the law, and hid it from her for 12 months.
Today she revealed she's lost confidence in chief executive Kerry Gregory and that the matter has been referred to the Serious Fraud Office.
She says the issue relates to the law that outlines the agency's levy collection - which she says was breached and actively kept from her.
She went on to explain that the agency even launched its own investigation into the issue.
"They've also spent half a million dollars trying to figure out what's been going on, and at no point in time thought to stop and check that the minister might ned to be aware that they're investigating themselves."
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