A second former Auburn council chief has sought to shirk responsibility for failing to prosecute a former councillor and property developer for alleged building breaches, an inquiry has heard.

Auburn council was suspended by the New South Wales Government in February amid allegations of councillors misusing their positions.

Auburn's deputy mayor Salim Mehajer hit the headlines over his lavish wedding which closed a Lidcombe street in 2015, and was suspended for breaches of the Local Government Act.

For the second day in a row, a public inquiry into misconduct allegations at the now-defunct Auburn council focused on an apartment block built by former councillor Ronney Oueik's company, BBC Constructions.

Mr Oueik was given council approval in 2001 to develop an Auburn unit block for 12 three-bedroom and 29 two-bedroom apartments.

However an inspection of the block carried out in 2008 revealed 24 of the units, approved for two-bedrooms, were ultimately made into three-bedroom apartments.

The change was noteworthy because it meant BBC Constructions paid less in developer contributions to council.

The council received legal advice in 2008 to prosecute Mr Oueik over the development, but failed to act.

It was not until the council was suspended by the NSW Government this year and an administrator appointed that legal action commenced.

Yesterday, the council's former head of planning Mark Brisby told the inquiry that he believed the responsibility to prosecute Mr Oueik fell onto the then-general manager John Burgess.

However today, Mr Burgess said the responsibility fell to Mr Brisby.

"I would have made made it abundantly clear he had responsibility ... and should carry out his duties," Mr Burgess said.

Mr Burgess said he did not follow up the matter because he "assumed action had been taken."