Former Sydney councillor Ned Attie says a local businessman who testified Mr Attie had made threats on his life contradicted this account by telling him he was in fact being threatened by the Mehajer family.

The ongoing inquiry into Auburn Council, the political home of Salim Mehajer, returned to an alleged threat made by Mr Attie towards his friend and local businessman, Warren Jack.

Former mayor of Auburn City Council Ned Attie testified that he remained friendly with the businessman who accused him of making death threats. Credit:Auburn Review

In testimony this week, Mr Jack claimed Mr Attie had tried to "extort" $200,000 from him over breakfast to clear up problems relating to his building works on a property he was renovating on Lidcombe's Henry Street.

But Mr Attie denied entirely his friend's recount of the breakfast, down to the meal choice.