Both men have been charged with two counts of official corruption. They were not required to plead when they appeared in court on Friday. Prosecutors argued on Friday the two men should not receive bail as they were considered a flight risk, and it was claimed some of the money may have been moved offshore. Mr Whyte was granted bail with a surety of $500,000 and was required to surrender his passport, live at his Mosman Park home, and not come within 1 kilometre of airport terminals, domestic or international. He must also not contact any current or former employees at the Department of Communities by any means, attend any Communities premises, or leave WA. Mr Whyte is next due to appear in court on December 13. Police told the court on Friday the second phase of the investigation would aim to identify the $20-25 million further alleged to have been fleeced through the scheme.

At a press conference on Friday, Mr Quigley said he could not elaborate on the facts of the case, but he questioned how "$22 million could go missing and nobody else knew". "As (CCC commissioner John McKechnie) has pointed out to me, the person in question was actually in charge of integrity and auditing within the department. So it was the vampire in charge of the blood bank," he said. "As the details of this are teased out, and the ... questions about what went on – who knew, what went on, what did they know and when they knew it – will probably deliver more shocks to out community." Jacob Anthonisz walks through a media scrum after he leaves court on Friday afternoon. Credit:Marta Pascual Juanola Mr Anthonisz, a physiotherapist, was granted bail. The court heard he had a history of heart issues and was taken to hospital until 6pm on Thursday after being approached by police, and has appointments in coming weeks in relation to his heart concerns.

He was required to provide an undertaking of $75,000, and had a surety of $100,000, must surrender his passport and must also not go within 1 kilometre of airport terminals or leave WA. Mr Anthonisz must also report to police every day between 8am and 8pm and must not contact current or former Communities employees, nor enter any premises associated with the department. He must also not associate with Mr Whyte. The court heard he would stay in WA to care for his five children, aged between two and 11, and his wife, who suffers from Crohn's disease and autoimmune arthritis. His defence lawyer argued Mr Anthonisz was not the main offender, and so the scale of his alleged offending should be considered differently.

But Magistrate Leanne Atkins said Mr Anthonisz should be considered at the same level as Mr Whyte, since the scheme couldn't have been carried out without his involvement. Tracey Jewel and Jacob Anthonisz. Credit:Facebook She did argue for a lower bail, however, considering Mr Anthonisz had fewer assets and was the sole provider for his family. In a twist indicative of Perth's crowded social scene, Mr Anthonisz is also the ex-husband of local Married at First Sight contestant Tracey Jewel. Ms Jewel was not aware of his arrest until contacted on Friday. "I am totally shocked," she said, and added the two had divorced seven years ago.

"The only thing I have to do with Jake is the drop off and pick up of our daughter and shared custody," she said. "I have nothing to do with his life other than our daughter." Mr Anthonisz is the father of Ms Jewel’s nine-year-old daughter, with whom he lives full time. He went on to marry his photographer wife Emma, who already had two daughters of her own. The couple also have two sons together. McGowan Government grapples with political fall-out Premier Mark McGowan said on Friday he had ordered a Public Sector Commission inquiry into the Housing Authority, which sits inside the Department of Communities.

"The allegations of corruption have their origins in the former Department of Housing and its legislative governance and administrative arrangements," he said. "The review will focus on governance, legal and administrative arrangements underpinning the housing authority and recommend any necessary changes." Labor ordered a restructure of the public service after coming to office in 2017. But Mr McGowan said he understood the alleged conduct went back to the beginning of the previous Coalition Government and was not uncovered until the changes his government had put in place. "Some of the changes in relation to machinery of government have allowed for these matters to be uncovered," he said.

"The changes we've made in the public sector have actually assisted in uncovering some of these examples of either alleged corruption or actual corruption." Mr Quigley said the changes to the Department of Communities ordered by the government "caused disruption to the little scheme that was running and exposed it all". "But for eight years, there he's sitting as an auditor, an integrity chief of the department," he said. "The person who was auditing it, was the person who was taking it, on the allegation. "Not only did he tick off, the allegation is that the overall audit structure, he was the head of that as well."

At a press conference on Friday, opposition leader Liza Harvey stopped short of blaming the alleged corruption on the Premier, but said his machinery of government changes had created the circumstances in which corruption could flourish. Ms Harvey referred to a recent Auditor General’s report saying the department was in chaos as a result of the restructuring. She said public servants were calling the opposition frequently frustrated at not being able to deliver services. “We have got a director general with several assistant director generals and they are responsible to over five ministers, from just one major department,” she said. “Corruption thrives in chaotic environments, and that is clearly what we are seeing at the moment. What we are not hearing from the Premier, is what he is going to do about it.”