The former mayor of Hurstville in Sydney's south, Con Hindi, has been suspended as a councillor for two months for misconduct.

Key points: Con Hindi found to have been "motivated by personal reasons"

Con Hindi found to have been "motivated by personal reasons" General manager stood down after recommendations he made against Cr Hindi

General manager stood down after recommendations he made against Cr Hindi Minister issues warning to other councillors acting improperly

Councillor Hindi had been under scrutiny for a decision he made when he was mayor last year to stand down his general manager Victor Lampe.

Mr Lampe had recommended Cr Hindi, a developer, be fined and possibly prosecuted over a property he owned at Mortdale in Sydney's south where council officers found asbestos.

At the time, Cr Hindi denied Mr Lampe's suspension had anything to do with the adverse report.

Instead he said it was about a complaint a young female staffer had made against him.

But the Office of Local Government (OLG) found Cr Hindi's behaviour amounted to misconduct when he disclosed information about allegations against Mr Lampe at a council meeting last year.

Handing down a report, the OLG's acting chief executive Tim Hurst said Cr Hindi's conduct was "motivated by personal reasons".

"Cr Hindi has conceded that his conduct was in breach, but has failed to show contrition and still seeks to justify his conduct as falling within the code," Mr Hurst wrote.

Cr Hindi will be suspended from two months starting on May 10.

The suspension means he will not be paid or allowed to attend any council events.

Mr Lampe was reinstated as general manager after a recommendation earlier this year by the OLG, but has since resigned.

Hurstville's current Mayor Vince Badalati was also investigated by the OLG for possible misconduct, but a decision has yet to be made.

'Community sick and tired': Minister issues warning

Local Government Minister Paul Toole welcomed the suspension and issued a warning to other councillors in the state who may be acting improperly.

"The community expects their elected representatives to conduct themselves in the highest standards," Mr Toole told the ABC.

"In NSW we do have most councillors doing the right thing, but unfortunately there are some that don't do this and I put every one of them on notice.

"I think the community is sick and tired of hearing of these allegations. I as the Minister am sick and tired of hearing these allegations and we're sick of councillors who put self-interest ahead of their own communities."

Meanwhile, the Minister said the Government was making a number of changes to the Local Government Act, citing a change made last year to the way councillors could vote on development applications.

"What we will continue to do though is to strengthen the Local Government Act and to ensure that councillors are very clear when it comes to pecuniary interests when they are looking at planning matters before them," Mr Toole said.

The ABC has requested comment from Cr Hindi.