Bhan Pratap handed in his shock resignation recently, following a similar departure by his predecessor Michael Dougall.

Councillors remain tight-lipped surrounding Mr Pratap's decision to resign, leaving much conjecture to the reason he gave away his $250,000 a year role.

But Mr McCullough is adamant Mr Pratap was forced out by the current council.

"Michael Dougall had worked for a couple of years for the previous council and I think that the new council - the Molony council - wanted to get rid of him because he was a bit of square shooter and I suspect that it's pretty much the same again," Mr McCullough said.

"I think there may have been a similarity that the incoming mayor has some sort of sense of resentment with the CEO and in both cases they moved to get rid of him.

"I think it is pretty clear that Bhan Pratap did not leave Mount Isa, he loved it here, his wife loved it here, he did not want to leave.

"Again, he hasn't told me that he has been forced out, but it would seem to be on the cards that he has been."

Mr McCullough said whatever the reason for his departure, he expected it would come at a significant cost to the ratepayer.

Mr Pratap had a salary package of about $250,000 compared to Mr Dougall's $140,000 salary.

"He was given the contract - according to the newspaper - about two years ago and if it was a five year contract, I would suspect he would have to be paid out that contract," he said.

"I would think that if he had been forced out that would be the amount and there has been a rumour going around that he would pick up more than three quarters of a million dollars, but it's just a rumour.

"But he would need to be paid out I suspect his remaining three years."

Mr McCullough said he would see no reason for the public not to be informed of the payout of a government employee such as Mr Pratap.

"Maybe a need for a bit of privacy when it comes to exact amounts, but the full facts about getting paid out for three years or whatever, that should be all brought out in the open because it is our money that they're playing games with," he said.

Mount Isa Mayor Tony McGrady said the public would not be informed of any details surrounding the resignation of Mr Pratap, including the payout figure.

"There is confidentiality agreement between Mr Pratap and the Mount Isa City Council and the negotiations for the terminations were conducted by the Local Government Association of Queensland," Cr McGrady said.

Cr McGrady said ratepayers would not be affected by the payout to Mr Pratap.

"Ratepayers will not be affected, provisions are made for employees for those circumstances," he said.

"He signed a contract under the previous council and that contract gave him certain entitlements and he will be paid out those entitlements."