I'm not sure that you have interpreted the circumstance, as reported, correctly.
1) The former Chief Executive alerted the Serious Fraud Office of her concerns which triggered an investigation (by the SFO).
2) She was later suspended from council employment because she did not alert them (council) of those same concerns.
3) She took out a personal grievance against the council for that suspension.
4) She received an $85,000 payout because of the council action.
Not quite the same as "the boss ignoring the warning".
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