A coronial inquest has heard explosive claims that CIB chief Don Hancock shot and killed brothel madam Shirley Finn, whose body was found riddled with bullets at Royal Perth Golf Course in 1975.

The claims came from Leigh Varis-Beswick, a former madam who went on to become a Kalgoorlie city councillor, who was told of the link between Mr Hancock and Ms Finn's murder by her ex-partner — former detective Tony Lewandowski — following Mr Hancock's death in a car bomb blast in 2001.

Ms Finn's body was found with four bullet holes in her head and slumped over the wheel of a white Dodge at the Royal Perth Golf Course in June 1975.

The mother of three was killed two days before a tax hearing where she had threatened to blow the lid on illicit dealings by politicians, businessmen and police.

Ms Varis-Beswick, formerly known as Harry, said she was Ms Finn's driver from about 1968 to 1971, before going on to work as a prostitute for Ms Finn.

She told the inquest that in 2004 she received a phone call from Mr Lewandowski, a detective who had worked closely with Mr Hancock — the detective in charge of the police Criminal Investigation Branch — and with whom she had been involved for several years.

She said he refused to give his name over fears the line was bugged, but asked Ms Varis-Beswick if she knew who she was talking with.

Ms Varis-Beswick said Mr Lewandowski — or Lou as he was commonly known — told her he had been the driver while Mr Hancock shot Ms Finn.

"There were two of us — Don Hancock was the trigger-man," Ms Varis-Beswick said Mr Lewandowski revealed to her.

Mr Hancock was killed in a car bomb planted by members of the Gypsy Jokers bikie gang out the front of his house in the Perth suburb of Lathlain in 2001.

The attack was revenge over the shooting death of bikie Billy Grierson near the Goldfields town of Ora Banda, for which Mr Hancock was blamed but never charged.

Ms Varis-Beswick told the court she had long been scared of Mr Hancock — known in police circles as "The Silver Fox" due to his white hair — because of his reputation.

She told the court Mr Lewandowski used the same nickname in the phone call to her following Mr Hancock's murder.

"The person who shot Shirley Finn is now dead. The Silver Fox is dead," she recounted Mr Lewandowski saying on the phone call.

Mr Lewandowski, who was found dead in his home in the Perth suburb of Parmelia in 2004, admitted fabricating evidence connected to the Mickelberg Perth Mint Gold swindle in 1982.

Ms Varis-Beswick also repeated claims she used to drive Ms Finn around with the then police minister Ray O'Connor — stating the two had been having an affair of sorts.

She was questioned strongly on her timeline of events by council for the Police Commissioner, David Leigh, who said there were inconsistencies in her previous police statement.

Ms Varis-Beswick admitted she had been mistaken on some dates.

The inquiry into Ms Finn's death continues.