The franchise has also decided to terminate the contracts of starting point guard Nat Connell and bench player Steve Robinson after the pair were suspended for cannabis use earlier in the year.
Diack yesterday revealed he resigned on May 15 but had planned to see the remainder of the season out.
However, Diack then decided to finish on Thursday night, just two days before the Nuggets last game.
"I'm a very principled person and I believe if you don't agree with what is going on you vote with your feet, and I've done that," he said.
Diack became frustrated with his role at the Nuggets when he believed he could not do the job he was employed to do.
"One of the initial issues was I was responsible for the franchise yet I had no control over it."
While he felt hamstrung, Diack was content to serve out his notice but a pay dispute made his position was untenable, he said.
Diack claimed Basketball Otago had not honoured an agreement to pay a percentage of the sponsorship he secured for the franchise.
"I do have some pay issues. There is a dispute over the cash component of my commission.
"Basically, we are in disagreement over what they [the commissions] are worth and that was a major reason for my departure, especially after what I believe I have given the organisation."
Diack declined to comment further when asked if he intended to seek legal advice to pursue the matter.
Basketball Otago chief executive Mark Rogers said it would not be appropriate to comment about Diack's employment details in the media.
Connell and Robinson had served their six -week ban for cannabis use and were available for the Nuggets' match against the Canterbury Rams in Christchurch tonight but had their employment terminated.
"We went through a process with the players and the board to ensure it was fair, and the board decided that that was the best cause of action," Rogers said.
