Published Friday, 20 August 2010
The DRD Permanent Secretary was asked to leave his desk on Tuesday after admitting his role in drafting a letter criticising three MLAs serving on the Public Accounts Committee.
The email sent by Mr Priestly to Phoenix Gas chief executive Peter Dixon was deleted some time ago from the Department for Regional Development and NI Water records.
It followed a PAC hearing during which questions were raised about whether the Independent Review Team investigating the failings of Northern Ireland Water - of which Mr Dixon was a member - had been truly independent.
The Independent Review Team report led to the sacking of four non-executive directors of NI Water.
Among other issues, PAC members asked about the relationship between Mr Dixon and NI Water chief Laurence MacKenzie.
Mr Dixon was angered by the questions and wanted advice on how to respond to the remarks by the MLAs.
The Permanent Secretary suggested writing a letter to the PAC.
He then prepared a strongly-worded draft for Mr Dixon, in which he described the line of questioning adopted by SDLP's John Dallat and Patsy McGlone and independent unionist Dawn Purvis as "disgraceful".
"I have had a go at a draft. No doubt you will wish to tailor it to your own style and to reinforce any particular points you wish to make", Mr Priestly wrote in his email.
One of the sacked non-executive directors of NI Water, Declan Gormley, told UTV the revelations are "very serious".
"It's hardly believable that a Permanent Secretary is writing correspondence for someone else to send, which is basically attacking the Public Accounts Committee", he told UTV.
Mr Priestly's email was copied to two colleagues and Mr MacKenzie.
Mr MacKenzie has issued a statement admitting deleting the email.
He defended his action, saying he was not involved in this correspondence.
Mr Dixon later retracted his letter of complaint, saying he accepted the MLAs were fulfilling their responsibilities as public representatives and members of the committee.
The Northern Ireland Civil Service has launched an investigation into the conduct of Mr Priestly in relation to his email correspondence with Mr Dixon in July.
Earlier on Friday, the Regional Development Committee confirmed it would be meeting Minister Conor Murphy to discuss his handling of the crisis.