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The man in charge of Wellington region prisons is on 48 hours' "special leave" and suspension could follow.
Corrections Department chief executive Barry Matthews today said the man was "placed on special leave pending a decision on his suspension in relation to an employment investigation that has commenced".
He refused to name him but NZPA understands he is Dave East.
"Information leading to the employment investigation was disclosed to Mr David Patten in the course of his investigation into alleged corruption at Rimutaka Prison," Mr Matthews said.
"While I am unable to advise any details in relation to this employment investigation, I can confirm that this is unrelated to any issues of alleged corruption at the prison."
Mr Patten, a Wellington barrister, started his independent investigation into allegations of corruption in November.
Mr East's seniority meant an external investigator had been engaged. The investigation could take several weeks but a decision on whether to suspend him would be made within two days.
Nine officers at Rimutaka prison, north of Wellington, have been suspended in recent weeks. Four of those suspensions were the result of an inquiry into corruption.
Corrections Association president Bevan Hanlon, who represents prison officers, told NZPA the rest of the suspensions were for "slack practice", such as poor decision-making.
He believed the investigation into Mr East meant management was finally being held accountable for allowing those practices to occur.
"To finally have someone acknowledge that for all of this stuff to be happening for such a period of time, someone should have known, so it's good to see it's acknowledged at that level," Mr Hanlon said.
Issues to come out of Rimutaka in recent months included convicted gang rapist Peter Mana McNamara being able to smuggle semen out of the prison; his partner subsequently gave birth to a boy.
As well, a convicted rapist who was receiving hospital treatment was allowed a conjugal visit.
"At the end of the day, someone's got to be accountable," Mr Hanlon said.
"You can't tell me that they (management) haven't known about these serious matters for the two years some people are alleging its been happening."
Prison officers were expected to follow orders without question and many felt they had been shouldering the blame for poor leadership.
"Its certainly put confidence back into our members, that's for sure."
- NZPA
