Mayor alleges blackmail plot at corruption hearing

A bizarre alleged blackmail plot against an independent mayor has been explored at a state corruption hearing.

Matthew Blackmore admitted he did not always plan on honouring agreements made with Strathfield Council colleagues at an Independent Commission Against Corruption hearing on Monday.

But he alleged an attempt to back out of a mayoral power-sharing deal in 2022 sparked a campaign of pressure and surveillance.

At the centre of the hearing is former Labor councillor Sharangan Maheswaran - an employee of fugitive developer Jean Nassif's Toplace development company.

Authorities are investigating similarities between the alleged pressure and campaigns against Nassif's political foe in state parliament.

Mr Blackmore initially agreed to hand leadership to a Labor councillor before the 2023 state election.

By the end of 2022, he decided he would stay on for the two-year term.

The decision "agitated" Mr Maheswaran and "upset", Labor mayor-to-be Karen Pensabene, Mr Blackmore told the inquiry.

The pair sought a series of meetings before Mr Maheswaran turned up the heat, he said.

Mr Blackmore claimed Mr Maheswaran said: "What you've got to understand, Matthew... I've got a reputation in the party that if I don't like someone, they don't get away with crossing me".

It would take just six weeks to fell Mr Blackmore, he allegedly was told.

Mr Blackmore claimed Ms Pensabene then relayed that Mr Maheswaran was "out of control" and printing 20,000 flyers.

Copies of flyers left on Mr Blackmore's car contained information about his 2009 guilty plea to fraudulent misappropriation of money and allegations about his council conduct.

Mr Blackmore believed ensuing approaches from Sydney journalists were connected to the alleged pressure campaign.