Canterbury-Bankstown Mayor Khal Asfour has described the findings of an upper house inquiry as a "public lynching", and says he's happy to be investigated by the corruption watchdog.
The report released on Monday evening found the mayor's expense claims for designer suits and spa treatments bought on overseas trips were "out of step with the community's expectations".
"This has been a political stitch up … a public lynching, and I'm not going to resign as the mayor," Mr Asfour said.
"I have done nothing wrong and these findings have no basis of fact or any evidence."
The NSW parliamentary inquiry into allegations of impropriety on the City of Canterbury-Bankstown Council also concluded "close relationships" existed between councillors and developers in the city's south west.
Mr Asfour was a focus of the inquiry, ordered after corruption allegations were levelled at him by ex-Labor MP Tania Mihailuk.
The assertion that council, or councillors had links to property developers were slammed by the mayor as "false" and "beyond a joke".
Inquiry chair and Liberal MLC Aileen MacDonald said the hearings had unearthed "numerous issues with the administration and leadership" of the council.
During the hearings, media reports revealed Mr Asfour was reimbursed by ratepayers for a massage, alcohol, and luxury goods purchased while on trips to Tokyo and New York.
He claimed reimbursements for clothes from brands like Hugo Boss, Armani and Polo Ralph Lauren under "corporate attire".
"The council's reimbursements of the mayor's expenses for designer suits, a spa treatment on an overseas council-funded trip, and his attainment of a Master of Business Administration are out of step with the community's expectations," Ms MacDonald wrote.
The committee recommended that the Office of Local Government review its expenditure guidelines for mayors and councillors.
It made no findings of corruption against Mr Asfour.
Mr Asfour has asserted he acted within the local government policy and denies any wrongdoing.
"I have done nothing wrong … this has been a kangaroo court from the beginning."
A separate inquiry, ordered by Canterbury-Bankstown council and led by high-profile barrister Arthur Moses SC, cleared Mr Asfour of wrongdoing.
He withdrew from Labor's upper house ticket for next month's state election in January, citing a "vicious smear campaign" against him, and maintains he doesn't regret stepping down.
"The mayor realises the attacks will continue and it is in the Labor Party's best interests he is not a distraction," a spokesman said in a statement at the time.
The inquiry also criticised that media statement, sent under the Canterbury-Bankstown letterhead, as a "misuse" of council resources.
In Monday's report, Ms MacDonald said the committee would forward concerns about the links between councillors and developers in Canterbury-Bankstown to the Independent Commission Against Corruption (ICAC).
"The committee has found that councillors of the Canterbury-Bankstown Council, and in particular Councillor Khal Asfour, have close relationships with property developers," the report states.
Ms MacDonald said the inquiry uncovered evidence property developers were using "shell companies" to obscure payments to council candidates and sidestep political donations laws.
The potential for property developers to be influencing planning instruments and infrastructure across Canterbury-Bankstown was "highly concerning", she said.
Mr Asfour said he was open to scrutiny by ICAC.
"I've answered all the questions they've thrown at me. There's nothing to see here and I welcome any further investigation."
The committee recommended the NSW government review the potential for property developers to bypass laws banning them from making donations to political parties or figures.
