The Independent Commission Against Corruption (ICAC) has announced a public inquiry into alleged fraud involving more than $4 million at Botany Bay Council.

Key points: ICAC will investigate alleged fraud at Botany Bay Council

ICAC will investigate alleged fraud at Botany Bay Council The alleged fraud is believed to be worth more than $4 million

The alleged fraud is believed to be worth more than $4 million A number of allegations involve chief financial officer Gary Goodman

A number of allegations involve chief financial officer Gary Goodman Commissioner Megan Latham will preside over the inquiry

A number of the allegations concern the council's former chief financial officer, Gary Goodman.

In a statement, the ICAC said it was investigating allegations that "Mr Goodman and other council employees dishonestly exercised official functions to obtain financial benefits for themselves and others by causing fraudulent payments of more than $4.2 million to be made by the council".

The commission said the fraudulent payments were allegedly made through false invoicing to council employees or other entities.

It is also investigating whether Mr Goodman sought and received payments for showing favourable treatment to contractors and whether council resources were used to obtain financial benefits.

The inquiry is due to begin Monday, run for three weeks and be presided over by Commissioner Megan Latham.

In a statement, the Botany Bay Council said it was cooperating fully with the ICAC's investigation.

"Council is grateful for the ICAC's work in exposing this matter and will continue to work with the ICAC to ensure those who have acted inappropriately are called to account for any criminal actions or misconduct," the council said.

"Councillors are not the subject of the investigation and the matters do not relate to developers or development within the city."

The council said it had already taken action in the Supreme Court to freeze the assets of two former employees involved in the alleged misconduct.

"The orders made by the court effectively and appropriately protect council's interests and enable us to actively pursue the recovery of any funds or resources that have been misappropriated," its statement said.