Mr. Frawley was appointed Investigation Commissioner in February 1988 after serving as the Mayor's criminal justice coordinator for two years.

The officials said the action was taken because the Investigation Commissioner, Howard Wilson, was routinely briefing the Mayor, his boss, on the progress of the inquiry.

Mr. Wilson, the Investigation Commissioner, is a close friend of the Mayor's and often shares breakfast with him at City Hall.

Susan E. Shepard, the Investigation Commissioner, also declined to say whether her department had been asked to begin an inquiry into Ms. Holtzman's relationship with the bank.

When told about the complaint, the Investigation Commissioner's executive assistant, Ron Davis, said it was inaccurate to suggest that the announcement had been made too soon.

The Investigation Commissioner oversees a department of 576 employees with a budget this year of $27.6 million.

Susan E. Shepard, the Investigation Commissioner, told a City Council committee after the article was published that her department found no evidence of potentially criminal behavior.

Earlier, as Investigation Commissioner from 1955 to 1958, he conducted many inquiries into city departments and agencies.

"It was highway robbery," said Susan E. Shepard, the Investigation Commissioner.

"The drug counseling program and the city were badly shortchanged," said the Investigation Commissioner, Susan E. Shepard.