The director of the Corrupt Practices Investigation Bureau Eric Tan will be replaced, a statement from the Prime Minister's Office announced on Tuesday, following a recent scandal at the agency in which an assistant director was charged with siphoning off some $1.7 million in public funds over a period of four years.

Mr Tan, who has helmed the bureau since 2010, will leave the agency when his term ends on Sep 30. He will be succeeded by Mr Wong Hong Kuan, who is now chief executive of the Singapore Workforce Development Agency.

Mr Wong, a former deputy commissioner of Police, will join the CPIB as Direcor (designate) on Sept 1 and take over from Oct 1.

Last month Edwin Yeo Seow Hiong, a 15-year CPIB veteran and head of the bureau's field research and technical support branch, was charged over the misapporpriation of the funds.

The statement from the PMO said Mr Tan had been issued a formal letter of warning, and has accepted responsibility over the supervisory lapses that led to the misappropriation of funds at the agency while he was in charge. His predecessor, Mr Soh Kee Hean, who left the agency in 2010, was also warned as lapses had also occurred during his watch.

Despite the supervisory lapse, Mr Eric Tan has made many contributions to CPIB, the PMO said. These include strengthening the organisation and handling major corruption cases. He will be redeployed to other duties where his knowledge and experience will be valuable.