The head of the New South Wales Independent Commission Against Corruption will retire from the position early next year.

Commissioner David Ipp will finish up with the ICAC at the end of January, having begun in the role in November 2009.

He has recently presided over a series of high-profile inquiries examining the conduct of former Labor government minister Ian Macdonald, Eddie Obeid and Eric Roozendaal.

In July the ICAC recommended criminal charges against Mr Macdonald and Mr Obeid over a coal-mining deal, but cleared Mr Roozendaal of corruption.

Commissioner Ipp is due to make corruption prevention recommendations to the State Government next week, and report before the end of the year on what should be done about two coal exploration licences issued by Mr Macdonald.

Premier Barry O’Farrell today confirmed the departure and paid tribute to Commissioner Ipp’s work.

“David Ipp’s appointment to the ICAC was probably one of the best, if not the best, decisions of the former [sic] Member for Toongabbie [Nathan Rees] that he made as premier, and I’m sure that he agrees with me as well,” Mr O’Farrell told State Parliament.

The Premier is proposing the appointment of Supreme Court judge Megan Latham as Commissioner Ipp’s replacement.

Justice Latham was appointed to the Supreme Court in 2005, having previously served on the District Court and as a NSW Crown prosecutor.

“She’s highly respected across the legal community as a distinguished judge with extensive experience in both public and criminal law,” Mr O’Farrell said.

“I’m confident she’ll pursue corruption with the same vigour, without fear or favour, as Commissioner David Ipp has done.”

The five-year appointment is subject to review by a parliamentary committee before being finalised.