Sydney's most controversial council paid more than $130,000 in consultancy fees to a former senior staff member accused of receiving similar payments for no known reason in a multi-million dollar corruption inquiry.

The fees collected by Peter Fitzgerald bring together two of Sydney's most notorious councils: Botany Bay, the subject of an ongoing ICAC inquiry into the alleged misappropriation of millions in ratepayer funds; and the home of colourful developer-politician Salim Mehajer, Auburn Council.

Mr Fitzgerald, a long-standing senior Labor figure in local government, acted as general manager to both councils.

The ICAC inquiry into the affairs of Botany Bay Council has heard a number of allegations against Mr Fitzgerald, including that for about a decade during his tenure he received monthly $8400 payments via a firm called "Bloggs Consulting" that had done no known legitimate work for that council. Mr Fitzgerald has denied this in evidence before the inquiry.