Richard Shields was also accused of undermining public confidence in the prosecution of an alleged drug dealer by having an affair with his female solicitor.
Officers under his command had allegedly been investigating the accused trafficker, according to a notice of dismissal filed in March.
Mr Shields last night told the Herald Sun he denied the allegations and would go to the Police Appeals Board to try to get the decision overturned. "I'm not happy about it at all. I've been denied justice in the way the process has been run from go to whoa," he said.
Mr Shields, who served in the state crime squads during a 19-year police career, said he had requested a meeting with Chief Commissioner Christine Nixon, who announced the dismissal, without naming the officer.
Mr Shields said he had not been interviewed over the claims.
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