Ipswich Mayor Andrew Antoniolli is facing expulsion from the Labor Party after being charged with a number of fraud offences after an investigation by Queensland's Crime and Corruption Commission.

The 47-year-old was charged at the Ipswich City watch house on Wednesday afternoon.

He is facing seven counts of fraud for allegedly using council money to purchase auction items from charitable organisations over the past six years.

In a statement, Councillor Antoniolli confirmed the charges "with much disappointment and frustration".

"Let me be clear — I have never been involved in corrupt or criminal activity and I intend to fight these charges," he said.

"These charges will not define me.

"In the mayoral by-election last year I stood on a platform of accountability and transparency.

"I have been committed to bringing about much-needed change at Ipswich City Council — cultural change, policy change, governance change, leadership change.

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"I promised to lift the veil of secrecy and to review our policies and procedures to increase transparency, and while there is more work to be done, we have made incredible inroads in regards to significant culture and governance reform.

"I have served our city and its people for 18 years, 28 years if you include my time as a police officer and I do not intend to step down any time soon."

Cr Antoniolli is due to face the Brisbane Magistrates Court in a fortnight.

Also on Wednesday, the CCC charged senior Ipswich council bureaucrat Craig Maudsley with one count of misconduct in public office.

The new charge comes after the CCC last year charged Mr Maudsley with misconduct for allegedly causing financial detriment to an engineering firm.

'Ipswich people want the council sacked'

On Wednesday night, the ALP issued Cr Antoniolli a show cause notice as to why he should remain in the party.

Local Government Minister Stirling Hinchliffe said he was "shocked and dismayed" that Ipswich City Council was again facing serious matters in relation to its leadership.

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"These charges that involve the corruption watchdog are indeed very, very serious and I've got to say that I'm — on behalf of the community, the residents, the ratepayers of Ipswich — very, very concerned, very upset for them, and the Government is.

"That's why I'll be seeking further and extensive legal advice tonight and I know that there is a resolve in the Government to act in ways in which we can swiftly."

Labor Member for Bundamba Jo-Ann Miller said Ipswich residents wanted the council sacked.

"The people of Ipswich are stunned," she said.

"Many people have called me and asked for the Government to put in administrators to give confidence back in the running of the city.

"The people of Ipswich are just stunned, they are like stunned mullets."

Opposition Leader Deb Frecklington said the minister would be within his rights to dissolve the council.

"This is a crisis that is unprecedented and it is in Annastacia Palaszczuk's own backyard," Ms Frecklington said.

"The minister needs to grow a backbone — the minister needs to appoint an administrator immediately."

Former mayor still before the court

Former Ipswich mayor Paul Pisasale was charged with corruption, fraud and abuse of office. ( AAP: Regi Varghese )

Former Ipswich mayor Paul Pisasale resigned last June citing health concerns, and has also been charged by the CCC.

The CCC initially revealed it was investigating an incident in which Mr Pisasale was detained at Melbourne Airport carrying $50,000 cash.

A court granted Mr Pisasale bail in August last year when he appeared on charges of extortion and attempting to pervert the course of justice.

Mr Pisasale has also been charged with corruption, abuse of office, fraud, perjury and unlawfully possessing a Viagra pill.

Court documents revealed he had been accused of taking a $10,000 cheque that should have been given to a charity in June 2013.

The CCC said that between November 2016 and June 2017, Mr Pisasale dishonestly acquired $51,292 worth of tools that were destined for a Men's Shed.

It is unclear whether the cases against Mr Pisasale and Cr Antoniolli are in any way related.