The mayor of one of Australia's biggest local councils appears to have misled the Queensland corruption watchdog over his knowledge of a campaign donor's development at public hearings earlier this year, the ABC can reveal.

Key points: Luke Smith said he didn't know height of proposed 15-storey development in hearings before his election

Luke Smith said he didn't know height of proposed 15-storey development in hearings before his election The developer had donated $40,000 to Cr Smith's campaign

The developer had donated $40,000 to Cr Smith's campaign Emails and video obtained by the ABC cast doubts over his claims

Luke Smith, the Mayor of Logan in the state's south-east, received $377,000 from developers and other businesses in the lead-up to the March 2016 elections.

The money was channelled into a campaign fundraising company called Logan Futures.

Councillor Smith told the hearings that before the election he did not know the height of a proposed 15-storey development by a Chinese-owned company who donated more than $40,000 to his campaign.

However, Right to Information documents and a video obtained by the ABC cast serious doubts over his claims.

The Crime and Corruption Commission publicly examined Cr Smith, and other candidates from other councils, as part of Operation Belcarra, an investigation into, "practices that give rise to potential corruption risks".

The CCC also said it was looking into whether any candidate had, "unlawfully influenced a council decision" in relation to a development application in favour of a donor.

Cr Smith was questioned over developer donations, as well as about receiving thousands of dollars in cash donations without issuing receipts.

One donor, who was also a witness, was questioned over giving cash donations in envelopes over dinner to the then-mayoral candidate.

At the hearing on June 13, 2017, Cr Smith was asked by counsel assisting Glen Rice about a development application made before the election by SKL Cables for a 15-storey hotel in a Logan suburb, which, at the time, was against building height restrictions.

Application for development for 22 Carol Avenue, Springwood. The site is owned by SKL Cables. ( Supplied )

According to disclosure forms lodged with the Electoral Commission of Queensland, the Chinese-owned company donated $35,000 in December 2015 to the Mayor's election campaign.

Another $5,500 followed in early 2016 just before the elections.

In March 2017 — a year after the election — the council, including the Mayor, voted for the relaxation of building heights. The changes could pave the way for the development to go ahead.

The changes are pending state government approval, and the council website states a decision on the application has been delayed.

Under questioning by Mr Rice, Cr Smith, denied he knew before the election the company wanted a 15-storey development.

"I wasn't aware of a 15-storey before that, no," he said.

Cr Smith did not declare a conflict of interest when voting for the planning changes.

He told the hearing he believed the SKL Cables development application wouldn't benefit because, he said, it was for only 10 storeys, not 15.

But an email obtained by the ABC under Right to Information legislation suggests otherwise.

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Sent to council staff on January 29, 2016 — before he was mayor — Cr Smith wrote: "I caught up with the developers of the proposed 15-storey building in Carol Avenue, Springwood yesterday."

In addition, a video of Cr Smith giving a speech to a Chamber of Commerce a month before the election, shows him stating: "I'm also aware that at the moment there's a live development application for a 15-storey building in Carol Avenue."

The ABC sent a detailed list of questions on Tuesday and also requested an interview.

However, Cr Smith declined to comment until the CCC finalised their Operation Belcarra report to Parliament.

Local councillor Darren Power told the ABC the CCC should investigate whether Cr Smith made misleading statements at the commission's hearings.

"Clearly, he indicates he didn't know anything about the 15-storey building, which surprises me dramatically because we can quite clearly see on the email that he knew about it, and we can clearly see on the video at the chamber that he knew about it," Mr Power said.

"I think it gives serious question to whether he misled, obviously that's just my opinion, but seriously I think it has to be investigated further."

A consultant for SKL Cables, Samuel Tiong, told the CCC hearing in June the application was on hold.

The CCC declined to comment on whether Cr Smith misled the commission.

The proposed Carol Avenue development site in Springwood ( ABC News: Alexandra Blucher )

Questions over potential inconsistencies in evidence

Concerns have also been raised over apparent inconsistencies between the Mayor's evidence in relation to taking donations from council suppliers, and the testimony of a travel agent who donated to his campaign.

Cr Smith stated in the public hearing he had not taken donations from council suppliers.

"I can say very clearly that there are no suppliers who donated to my campaign," he said.

However, the ABC can reveal a Gold Coast travel agency, which organised some travel and accommodation for two delegations to China for Logan City Council, donated $35,000 to his campaign.

Cr Smith confirmed to the CCC hearing the owner of the travel agency, Sally Chung, contributed to the 2016 campaign for a campaign mail-out.

"She gave $35,000, yes," he told the CCC hearing.

While Cr Smith was not directly asked by the counsel assisting whether he knew the travel agency was a council supplier, the owner Ms Chung was.

Ms Chung told the hearing her company, Holiday International Golden Travel, had arranged travel for two trips for Logan City Council officers, one three years ago before the election, and one in 2016 after the election.

She said Cr Smith was on the first Asian delegation her company organised more than three years ago when he was still a councillor, and that she dealt with him over email in the lead-up to the trip.

"Did you meet him in the course of arranging that travel?" counsel assisting asked. "Not directly meeting. It's through the email," Ms Chung answered. "My partner met him in person during the trip."

Logan councillor Darren Power has raised concerns Ms Chung's evidence to the commission appears to contradict Cr Smith's testimony.

Logan City councillor Darren Power says the CCC should investigate whether Cr Smith misled the commission. ( ABC News: Alexandra Blucher )

"It indicated that Golden Travel was a supplier to council before the election and therefore it contradicts what Cr Smith said in his testimony," he said.

The ABC has obtained an internal Logan City Council travel reconciliation for an Asian trade delegation from July 23 to August 7, 2016 that included Cr Smith.

The travel reconciliation lists "Golden Travel" as organising accommodation for three nights in Suzhou and Shanghai for $1,200.

Cr Smith also declined to respond to questions relating to potential inconsistencies between his evidence, and that of Ms Chung.

General perjury warning issued; report to be tabled in next couple of months

The ABC understands Operation Belcarra is also investigating whether some witnesses at the public hearings, which are just one part of the operation, have committed the offence of perjury.

In addition, CCC chairman Alan MacSporran gave a general warning at a parliamentary committee earlier this month that any witnesses who deliberately lie to a CCC hearing will be charged with perjury, particularly because they are protected from self-incrimination.

"The stance that we take and will increasingly take from this point forward is that people who come in with that background and deliberately lie will — if it is something that we can prove to be a lie — will be charged with perjury," Mr MacSporran said.

Mr MacSporran also said at the parliamentary committee the Operation Belcarra report should be finalised in the next couple of months.