Victorian horseracing authorities have launched an investigation into the betting behaviour of multi-millionaire developer John Woodman and local councillor Geoff Ablett, two men at the centre of a corruption watchdog inquiry.

Key points: Racing Victoria launched its investigation into the betting accounts of Cr Ablett, Mr Woodman and the director of Spicer Thoroughbreds after they were raised in IBAC hearings

Racing Victoria launched its investigation into the betting accounts of Cr Ablett, Mr Woodman and the director of Spicer Thoroughbreds after they were raised in IBAC hearings On Monday, Cr Ablett told the hearing he had "no idea" why Mr Woodman did not put his name to a $10,000 deposit into Cr Ablett's account

On Monday, Cr Ablett told the hearing he had "no idea" why Mr Woodman did not put his name to a $10,000 deposit into Cr Ablett's account Cr Ablett, a former VFL footballer, said he would have declared a conflict of interest if he had been aware of Mr Woodman's interest in a project before council

The Independent Broad-Based Anti-Corruption Commission (IBAC) is investigating allegations City of Casey councillors received bribes from Mr Woodman in exchange for favourable votes on planning decisions.

On Monday, Cr Ablett — a former Hawthorn VFL footballer from the famous Ablett family — told the inquiry he did not know why Mr Woodman deposited several thousand dollars into his bank account or why it was done under a false name.

He also defended as legitimate Mr Woodman's payment of tens of thousands of dollars to him to look after a racehorse that never ran, an arrangement described by IBAC's lawyer as "patently ridiculous".

The inquiry has previously heard Mr Woodman would funnel monthly $5,000 payments to another Casey councillor, Sam Aziz, through Spicer Thoroughbreds.

Mr Woodman claimed Cr Aziz was working for Spicer Thoroughbreds to procure racehorses for Chinese buyers.

Last week, Racing Victoria asked bookmakers to audit the betting accounts of Cr Ablett, Mr Woodman and Brad Spicer, the director of Spicer Thoroughbreds.

When contacted by the ABC, Racing Victoria declined to reveal the specific details of the audit.

"Where there is a matter of public interest regarding licensed or registered racing participants, our integrity department will regularly seek to garner information to determine whether there is or has been a threat to the integrity of the sport," a spokeswoman said.

"Where appropriate, this includes requesting information from other parties, including wagering service providers, to ensure that the integrity department are appropriately informed and can consider whether they need to proceed with a formal investigation or inquiry."

John Woodman has been accused in previous IBAC hearings of treating councillors "like pawns on a chessboard". ( Watsons )

Councillor has 'no idea' why false name used for payments

On Monday morning, the inquiry was shown two bank transactions where Mr Woodman used either a fake name or did not disclose his name to deposit $10,000 into Cr Ablett's bank account.

The inquiry was told the money was deposited at the same time the council was considering the Cranbourne West rezoning development in 2014, which would have netted Mr Woodman and his companies more than $100 million in profits.

The inquiry heard Cr Ablett's bank account was overdrawn when the money was deposited by Mr Woodman, but Cr Ablett said he could not remember what the payments were for.

"You see a developer paying money in a false name in cash into the account of a councillor, in the area where a developer runs projects, you think that on the face of it was corrupt wouldn't you?" Mr Tovey asked.

"You're saying corruption, I'm certainly not," Cr Ablett replied.

"I had no idea why he used a false name, I didn't ask him to. I don't know why he did that."

The inquiry also heard that after the vote on the Cranbourne West development went in Mr Woodman's favour, Cr Ablett received $15,000 from Mr Woodman to pay off his credit card debt.

Cr Ablett maintains he did not know Mr Woodman was involved in the Cranbourne West rezoning, despite the inquiry being shown an email Mr Woodman sent Cr Ablett and Cr Sam Aziz before a council meeting in 2014 detailing a motion Mr Woodman wanted passed on the redevelopment.

"I don't remember seeing it," Cr Ablett told the inquiry.

"If there was anything where I knew he was involved I would've declared a conflict of interest and that is the truth," Cr Ablett said.

The Pavilion estate is one of three projects the IBAC hearings have focused on. ( liveatpavilion.com.au )

The inquiry was told the Cranbourne West re-development came before the council five times and Cr Ablett voted in favour of the proposal each time.

He did not declare a conflict of interest with the council until March 2015, after he was interviewed by the ombudsman about allegations of corruption.

The inquiry has previously heard that Cr Ablett received more than $300,000 in total from Mr Woodman since the pair met in 2010.

'Patently ridiculous' payments for racehorse that never ran

The inquiry was told Mr Woodman approached Cr Ablett in 2010 to purchase a share in a racehorse when multiple planning issues were before the council which Mr Woodman had interests in, including Brompton Lodge and Botanic Ridge.

Cr Ablett, who is also a hobby horse trainer, received $60,000 in the past financial year alone to look after racehorse Prima Facie, which never made it to the track.

The inquiry heard Mr Woodman paid Cr Ablett about $5,000 a month to look after the horse, which stayed in the paddock and cost Cr Ablett about $300 a week to look after.

"Are you seriously suggesting that $180,000 is the cost of keeping a broodmare in a paddock?" counsel assisting IBAC Michael Tovey QC said.

"You were getting paid $60,000 a year to look after a one-third interest in Prima Facie, who was just in a paddock?" Mr Tovey said.

Cr Ablett voted in favour of Mr Woodman's development project at council meetings five times. ( ABC News: Dylan Anderson )

Mr Tovey said the suggestion was "patently ridiculous", despite Cr Ablett claiming he spent 40 hours a week looking after the horse.

"I thought I was entering into a legitimate horse partnership and I never gave it another thought," Cr Ablett said.

Cr Ablett maintains he was not aware Mr Woodman was involved in the two developments when they were before council in 2010 and Mr Woodman first approached him.

"Do you say it would be wrong for you, knowing Mr Woodman had a financial interest in a matter before council, to be promoting a vote in his favour in any way at all?" Mr Tovey asked.

"If I knew he was involved I wouldn't be doing that," Cr Ablett replied.

"Because that would be corrupt wouldn't it?" Mr Tovey asked.

"It would be corrupt," Cr Ablett said.

Premier under pressure over 'dumplings with developers'

The scandal has also spread to state politics, with revelations over the weekend that Premier Daniel Andrews once dined with Mr Woodman at the upmarket Flower Drum restaurant.

Mr Andrews has never denied meeting Mr Woodman at functions.

The Opposition has demanded Mr Andrews declare how many times he has met the developer.

"[Andrews] was very keen to talk about lobster with a mobster, so he needs to talk about his dumplings with developers," Opposition Leader Michael O'Brien said over the weekend.

"He needs to explain what did he do at those meetings, what did he offer and what did he get in return."