An independent probe has cleared Canterbury-Bankstown Mayor Khal Asfour of wrongdoing after explosive accusations of corruption were levelled against him by a former Labor MP.
Last September Labor MP for Bankstown Tania Mihailuk used parliamentary privilege to rebuke her own party and link Mr Asfour to jailed former Labor minister Eddie Obeid.
In the late-night speech, she accused Mr Asfour of furthering the interests of developers, including Mr Obeid, and urged the party not to endorse Mr Asfour for the upper house ticket.
"I have never taken a backwards step against corruption and I never will," she said.
The shock speech led to her sacking from the shadow cabinet by Labor leader Chris Minns, who has continuously stood by Mr Asfour.
In the same month, Liberal East Hills MP Wendy Lindsay also raised concerns under parliamentary privilege about conversations between councillors and developers which she observed at a 2016 Bankstown council meeting. Mr Asfour served as mayor of the Bankstown council from 2011 to 2014 and again in 2015.
Mr Asfour has since been endorsed for a spot on the upper house ticket for the March state election and Ms Mihailuk has quit the Labor Party declaring it is "not ready to govern".
The City of Canterbury Bankstown had engaged high-profile barrister Arthur Moses SC to oversee an investigation into Ms Mihailuk and Ms Lindsay's allegations.
The findings of the three-month inquiry were released by the council today.
It found no evidence Mr Asfour or any council employees breached the code of conduct or engaged in corrupt conduct.
It also found Mr Asfour never had any business or personal relationship with Mr Obeid or his son Paul.
"It is equally apparent from the evidence that Mayor Asfour managed conflicts of interest diligently and in line with the requirements under the Codes of Conduct that applied during the relevant period that he served as a Councillor or Mayor," the inquiry stated.
In a media statement, Mr Asfour said the findings were a "complete vindication" of him and the entire staff at council.
"The allegations levelled were without substance or foundation and for the sole purpose of political gain," Mr Asfour said.
"The amount of time and resources wasted on this political witch hunt must be condemned."
He added the last few months had not been an "easy time" for council staff.
The inquiry said the allegations levelled at Mr Asfour had "regrettably" cast a shadow over the entire council, which could undermine public confidence in its ability to serve the community.
No observations were made about Ms Mihailuk and Ms Lindsay's use of parliamentary privilege but Mr Moses said he agreed with remarks made by ICAC chief commissioner John Hatzistergos last year.
"Investigations into allegations of corrupt conduct are rarely if ever assisted by premature publicity. It is inappropriate to weaponise a referral to the Commission for attention or political advantage," Mr Hatzistergos said in the ICAC annual report.
The Moses review also noted that both Ms Mihailuk and Ms Lindsay rejected requests for further information.
The review had no legislative powers to compel them to cooperate.
Mr Asfour is still facing a parliamentary inquiry into allegations of impropriety at the Canterbury-Bankstown council.
The inquiry was ordered by Local Government Minister Wendy Tuckerman last November.
It must hand down its report before the election in March.
