Disgraced former Education Department boss Nino Napoli spent thousands of dollars on his toupee, and suggested his cousin bill state schools for the expensive hairpiece.

An anti-corruption hearing heard that Mr Napoli was worried he was "too sloppy" with paperwork and feared he would be jailed.

'I'm in deep s---': sacked Education Department head Nino Napoli.

Mr Napoli's cousin Luigi Squillacioti fronted the Independent Broad-based Anti-corruption Commission hearings into the misuse of Education Department on Wednesday, where he was quizzed about allegedly false invoices issued by four companies he owned and directed with his brother Carlo. It has been alleged Mr Napoli used these companies to divert millions of dollars in Education Department funds.