Racing minister Madeleine Ogilvie has been accused of being "untruthful" about the departure of TasRacing's chief executive, who left the organisation shortly after a scathing workplace culture review.
In July, Ms Ogilvie announced Paul Eriksson's departure from TasRacing, saying he was "returning to Sydney to spend more time with his family".
However, TasRacing chair Gene Phair told a parliamentary hearing that Mr Eriksson's contract was terminated in June, two months after a workplace culture review delivered a damning assessment of the organisation's leadership.
The survey of TasRacing employees revealed less than 20 per cent of them thought its executive team "leads well and leads by example", while fewer than a quarter thinking it created "a positive and constructive workplace culture".
Mr Phair said Mr Eriksson met with the board to set out his "road map" for the future following the review.
"We asked the CEO for the consideration and a presentation to the board for what that road map would look like and the board decided that the road map didn't meet the expectations for the board, so the employment was terminated," he said.
"The board at the time decided that the pathway forward that had been presented to the board wasn't satisfactory."
Mr Eriksson's contract was extended for three years in March, just three months before his departure.
Ms Ogilvie told Labor's Josh Willie it was "churlish" to suggest she'd made a false statement about why Mr Eriksson had left the organisation.
"I think that's a statement Mr Eriksson himself said, so I was probably picking up from that," she said.
"The other matters at hand were a matter for the board and that's an operational matter I don't reach into."
Minister 'in breach of parliamentary standing orders': Labor
In a media release, Labor racing spokesman Dean Winter said Ms Ogilvie had "not been truthful" about the nature of Mr Eriksson's exit.
"This false statement by Ms Ogilvie unfortunately reflects the modus operandi of this Liberal government where routine cover-up and secrecy is part of a culture that has been on display all year," she said.
"It is clear the racing minister has not been truthful which is in breach of parliamentary standing orders and the ministerial code of conduct."
After leaving TasRacing, Mr Eriksson returned to Sydney and in September was appointed as the chief executive of Racing Australia.
He declined to comment further, referring the ABC to the July media release issued by Ms Ogilvie.
In a statement on Wednesday, Ms Ogilvie reiterated that it was a matter for TasRacing.
"As I have said previously, the departure of Mr Eriksson is an employment matter for the TasRacing board," she said.
"Comments I made at the time were a reflection of what TasRacing had published and communicated to me at the time."
The state government also announced its response to a review of the state's Racing Regulation Act on Wednesday, declaring it would abolish the Office of Racing Integrity and replace it with an independent statutory body called the Tasmanian Racing Integrity Commissioner.
TasRacing will receive $200,000 to implement the supported recommendations.
