Evidence top WA bureaucrat theft may exceed $25 million

It's been revealed a high ranking government official accused of stealing $2.5 million of tax payer funds, may have taken up to ten times that amount, in what may be one of the country's biggest ever corruption scandals.

Paul Whyte, Assistant Director General for the Department of Communities, is accused of siphoning funds from the department, which funds public housing for Western Australia's most vulnerable people.

Premier Mark McGowan describing the alleged false invoice scam as a complete betrayal.

 "If proven these allegations are absolutely appalling," he said.

The 56-year-old's Mosman Park mansion was raided by WA Police and Corruption and Crime Commission officials yesterday.

He's been charged with two counts of official corruption, along with his long-time associate Jacob Anthonisz.

The 43-year-old physiotherapist and father of five operates a horse racing syndicate with Mr Whyte.

Today the court heard Mr Anthonisz is the director of two companies that Mr Whyte was allegedly funnelling money into, using fraudulent invoices for a housing project in WA's Peel region.

WA Police alleging there's evidence to suggest up to a further twenty five million dollars in fraudulent invoices. 

It's alleged the money was withdrawn for personal use, overseas race horses and sent to offshore bank accounts.

Attorney General John Quigley said the investigation is far from over and will probably deliver more shockwaves to the community.

"The person in question was actually in charge of integrity and auditing at the department," he said in reference to Paul Whyte.

"So it was the vampire in charge of the blood bank."

Both accused men were granted bail and their passports seized.

Paul Whyte posted a $500,000 personal undertaking.