Now Cr Mehajer was being grilled about mystery payments to a pool company and a hefty unpaid tax bill. Auburn deputy mayor Salim Mehajer was questioned about mystery payments to a pool company. Credit:Nick Moir SM Project Developments, co-owned by Cr Mehajer and his business partner Minh​ Hua, was forced into liquidation by the Tax Office in January 2013 over $837,000 in unpaid tax and penalties. While the tax debt was owing, SM had been making payments to a pool company – despite none of its properties having a pool – and handing over thousands in cash, including to Cr Mehajer's wife Aysha​. The liquidator is now attempting to claw back almost $700,000 from the men in the Supreme Court, alleging they entered into "unreasonable" transactions. Mr Hua, a former Auburn councillor who is the brother-in-law and business partner of Auburn mayor Le "Lily" Lam, told a Federal Court liquidator's examination last year he had "no involvement" in the day-to-day running of the company. He also didn't have a pool.

"I trust Salim. He handle everything," he said. As for the swimming pool at Cr Mehajer's lavish pile in Lidcombe, the deputy mayor and property developer assured the hearing it was completed "well and truly after this period". Pressed about an $81,000 payment to Premier Pools in 2012, Cr Mehajer said the company also made pumps for stormwater pits – but he couldn't point to any pump that might have been bought. He suggested the money could have been given to a subcontractor "in lieu of" a payment that was due. It was, however, "impossible to say" which one. The company also made tens of thousands of dollars in "personal loans", including $2500 to Cr Mehajer's wife Aysha. "Let me suggest to you that what you did was you treated this account as your own personal cash account," the barrister for the liquidator, David Stack, said.

"Incorrect," Cr Mehajer replied. But when the subject turned to tax and whether Cr Mehajer knew the company had to pay its bill by August 13, 2012, he said Mr Stack had given him "brain freeze". "What do you mean I've given you a brain freeze?" Mr Stack demanded. "My brain is not functioning and operating very well now," the then 28-year-old replied. The tax bill was a "surprise", he said, and while he intended to pay, the company's accountant had advised them not to do so at that point. "We were more so let down by the accountant. To have a for sale sign in front of our property was really heart-touching," he said.

Ahmad​ Yaseen​, the company's former general manager, admitted to forging documents from a string of SM "creditors". He denied Cr Mehajer asked him to do so and said the councillor was "upset" when he found out. Mr Yaseen, who said it was right "to an extent" to describe him as Cr Mehajer's "right hand man", said the purpose of the forged documents was to ensure genuine creditors were paid by the liquidator. He denied it was "intended ...that those moneys would be funnelled back" to companies linked to his friend. Cr Mehajer insisted he was "absolutely not" responsible for the forgeries. Asked why he didn't tell the liquidator when he realised the documents were fake, he said he wanted to get legal advice "from the get-go" and the liquidator refused to speak to him. with Leesha McKenny