The New South Wales corruption watchdog has recommended State Emergency Service (SES) Commissioner Murray Kear be dismissed and prosecuted for sacking a deputy who blew the whistle on her colleague.

The ICAC has found Mr Kear dismissed deputy commissioner Tara McCarthy last year as payback for blowing the whistle on his friend, Deputy Commissioner Steven Pearce.

Ms McCarthy had alleged that Mr Pearce entered into dodgy contracts, misused SES funds to buy roof racks and brakes for his car, misused his SES credit card and fabricated diary notes.

The ICAC found that Mr Kear engaged in corrupt conduct by failing to investigate the allegations because of his friendship with Mr Pearce and sacking Ms McCarthy in reprisal.

In a statement ICAC said both Mr Pearce and Mr Kear were known to each other prior to Mr Pearce applying to join the SES.

"Commissioner Kear sat on the original interview panel when Mr Pearce first applied to join the SES, but did not disclose a conflict of interest," the ICAC stated.

The ICAC recommended the Police Minister consider dismissing Mr Kear, who has been on leave since last year.

"The commission is also of the opinion that the Minister for Police and Emergency Services should give consideration to the taking of action against Mr Kear for disciplinary offences of misconduct with a view to his dismissal," the ICAC said.

The ICAC also recommended the Director of Public Prosecutions consider prosecuting Mr Kear for a breach of the whistleblower's act.