Independent Commission Against Corruption (ICAC) commissioner Megan Latham has resigned.

Her resignation comes just days after she learnt she would have been forced to reapply for her job under changes to the ICAC’s structure that passed New South Wales Parliament last week.

The legislation prompted claims that the state government was effectively forcing Ms Latham out of her job, as payback for her investigation into Liberal party political donations, which saw 10 Liberal MPs resign or go to the crossbench in 2014.

As part of the overhaul, the ICAC’s structure was changed so that it is led by three commissioners instead of one.

Ms Latham accused the state government of an “unprecedented attack” on the agency’s independence and said that replacing the current single commissioner with three commissioners would “fundamentally weaken” the corruption watchdog.

The Commissioner notified the NSW Governor, General David Hurley, of her intention to step down on November 30.

Ms Latham still had two years left in her term.

In a statement, Ms Latham said: “I am grateful for the opportunity to have worked at the commission. 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.”

Megan Latham did ‘right thing’: Ipp

Former ICAC commissioner David Ipp said the restructure had given Ms Latham no choice.

“I think it’s disappointing that Megan Latham has been forced to resign due to the restructure, but she couldn’t stay on because it would have been an embarrassment to her,” he said.

“So I think she’s done the right thing.”

NSW Premier Mike Baird released a statement, in which he said the government would start its search to fill the three vacancies.

Former police minister Mike Gallacher, who moved to the crossbench in 2014 as part of the investigations into Liberal Party donations, said the ICAC had lost its way.

“Like the recently reformed Police Integrity Commission, public confidence in the ICAC is absolutely crucial,” he said.

“Today’s announcement, I believe, will commence rebuilding that public confidence in the ICAC’s ability to fight corruption in the years ahead.”

Ms Latham’s resignation has prompted questions about what will happen to ongoing investigations, especially Operation Credo – the investigation she oversaw into Australian Water Holdings.

The investigation was completed last year, but findings have not been handed down in order not prejudice separate criminal trials involving former Labor powerbroker Eddie Obeid.

Operation Credo also embroiled senior Liberal Party figures, including fundraiser Nick Di Girolamo and former AWH chairman Arthur Sinodinos.

“Nothing in the legislation passed by Parliament last week prevents current investigations, including Operation Credo, from continuing under the new commission and being completed,” Mr Baird said.

“I believe the changes approved last week by Parliament will significantly strengthen the ICAC, and reinforce that, under the Liberals and Nationals government, there is zero tolerance for corruption in NSW.”

A statement released by the ICAC said the commission could continue to function, and that the assistant commissioner, the Hon Reginald Blanch AM QC, would continue in office.

The Public Service Association of NSW, a union that represents some public sector employees, claimed Ms Latham had been “pushed out” of the ICAC.

“The resignation of Megan Latham is the scalp the Baird government had been seeking as part of its push to curb the capacity of the ICAC to investigate the government, its dealings and business associations,” PSA general secretary Stewart Little said.

-ABC