The corruption watchdog has raided the offices of Liverpool mayor Ned Mannoun, days after he lost a bid to become the federal Liberal MP for the seat of Werriwa in south-west Sydney.

Cr Mannoun, who was singled out for praise by Prime Minister Malcolm Turnbull in his last major speech before the election, came under fire in September last year after Shooters and Fishers MP Robert Borsak used parliamentary privilege to raise allegations of real estate deals, cosy staff appointments and a suspicious council fire.

Liverpool mayor Ned Mannoun: "I am shocked and disgusted by this hideous misuse of parliamentary privilege."

The Liberal mayor said at the time he was "shocked and disgusted" by the "hideous misuse of parliamentary privilege" and challenged Mr Borsak to repeat the "highly defamatory" claims outside Parliament.