Megan Woods says a $100 thousand compensation payout is about doing the right thing by Derek Handley.
The new Government Digital Services Minister is pressing pause on appointing a Chief Technology Officer despite Derek Handley already being offered the role.
His appointment has been shrouded in controversy, after former minister Clare Curran failed to disclose a meeting she had with him.
Megan Woods says although Derek Handley hadn't signed a contract the Government needs to honour its commitments.
Derek Handley has said in a Linkedin post that he and his family will donate the compensation "proceeds" to a tech creativity fund.