SA’s ombudsman has accused a former TAFE director of maladministration.

Ombudsman Wayne Lines has been investigating the former director after being referred by the state's Independent Commissioner Against Corruption, Bruce Lander.

Mr Line has found the unnamed director wrongly offered a $105,000 redundancy package to a staff member who was being investigated for misconduct.

“The former director's conduct amounted to mismanagement in their official functions and duties,” Mr Lines said.

“The handling of the matter put TAFE SA in a poor bargaining position with respect to the alleged perpetrator who had made some admissions ... in relation to their conduct.”

The ombudsman found “significant errors” in TAFE’s investigation into the misconduct complaint, and that the former director “did not provide the alleged perpetrator with all the evidence against them to properly answer the allegations”.

TAFE SA has issued a statement saying it has “already taken appropriate action to ensure there are no similar situations in the future”.

“TAFE SA has very specific policies and procedures regarding disciplinary matters and TVSPs which are regularly reviewed,” it said.

“Given that the former director is no longer employed by TAFE SA, we make no further comment in regard to this matter.”

TAFE was plunged into crisis when a federal audit almost all of the courses it reviewed were substandard.