An inquiry into the City of Perth has heard the city's former chief executive, Gary Stevenson, was sacked less than a week after suspended Lord Mayor Lisa Scaffidi learned he had referred her to the Corruption and Crime Commission.

Key points: Lisa Scaffidi and the City of Perth Council were suspended after bitter infighting

Lisa Scaffidi and the City of Perth Council were suspended after bitter infighting An inquiry is examining the conduct of the council leading up to the suspensions

An inquiry is examining the conduct of the council leading up to the suspensions Mrs Scaffidi has called the timing of CEO Gary Stevenson's sacking a "coincidence"

It heard that throughout 2015, Mrs Scaffidi and her personal lawyers did "everything they could" to have Mr Stevenson provide them with the results of an internal review into councillors' disclosure of gifts and travel.

On January 14, 2016, Mrs Scaffidi obtained the results, which included findings that she had failed to declare that media company Bloomberg had paid for her accommodation during a 2013 trip to New York.

The next day she formed a committee with three other councillors to conduct a performance review of Mr Stevenson, and it was decided he would be terminated from the position.

Mrs Scaffidi said the timing of this decision was a "coincidence".

Mrs Scaffidi has been the focus of a public hearing into the City of Perth this week. ( ABC News: James Carmody )

Also on the committee were councillors Judith McEvoy, James Limnios and Janet Davidson.

CEO 'shattered' at news of sacking

On January 20, the committee met with Mr Stevenson about 8:30am and informed him that he would be terminated.

The inquiry heard this was the first he had learnt he was being sacked, and he was "shattered" at the news.

A special council meeting was convened less than an hour later, at 9:15am, and Mr Stevenson's termination was made official.

Counsel assisting the inquiry, Kate Ellson, put to Mrs Scaffidi that she had put in motion Mr Stevenson's termination because she had found out he had referred her to the CCC.

"You found out, and he was gone in a week," Ms Ellson said.

Ms Scaffidi denied the accusation and suggested there was an "agenda" against her.

An inquiry is examining the council's conduct after it and Mrs Scaffidi were suspended. ( ABC News: Charlotte Hamlyn )

The inquiry heard a special council meeting was convened less than an hour after Mr Stevenson learnt of his termination, at which it was made official.

Special council meetings are open to the public, but there was no announcement made that this meeting was taking place.

There were also no governance officers present and the usual minute-taker was not present, so Mrs Scaffidi's personal assistant took minutes instead.

The inquiry earlier this week released WhatsApp messages from a closed group of councillors that included Mrs Scaffidi, in which she referred to Mr Stevenson as a "snake".

She was also questioned about referring to Mr Stevenson's termination as "the slaying of Satan", but denied using such a term.

Councillors left off WhatsApp meeting message

The inquiry heard that the same WhatsApp group chat, which excluded councillors Jemma Green and Reece Harley, was used to inform councillors of the special council meeting about Mr Stevenson's employment termination.

Mrs Scaffidi denied instructing councillors to be dishonest with Jemma Green and Reece Harley. ( ABC News: Briana Shepherd )

Excerpts of Mrs Scaffidi's messages were read to the inquiry, including her telling councillors to be there at 9:15am "ready to go in their seats" for a 9:30am meeting.

"If Reece and Jemma arrive, you only heard about it on Tuesday afternoon," another message said.

Mrs Scaffidi denied that showed she was instructing councillors to be dishonest with Mr Harley and Dr Green.

It was put to Mrs Scaffidi that after the special council meeting, she told a human relations manager from the city she was glad Mr Stevenson had been sacked.

Ms Ellson said that conversation included Mrs Scaffidi saying the termination "should have been done sooner" and that Mr Stevenson had been "extremely annoying" and was "always complaining to the CCC".

Mrs Scaffidi denied making those comments.

Chief executive role a 'poisoned chalice'

After Mr Stevenson's sacking, a director of the City of Perth, Martin Mileham, was appointed acting chief executive before being given the role permanently.

The inquiry heard that Mr Mileham had described being appointed to the acting position as being given "a poisoned chalice".

Former City of Perth CEO Martin Mileham leaves the inquiry after his appearance. ( ABC News: James Carmody )

He was put in the witness box and questioned about a phone call he had with Mrs Scaffidi on July 26, 2016, which he described as "adversarial".

The topic of conversation was a person Mrs Scaffidi was recommending be given the honour of being granted ceremonial keys to the city.

Mr Mileham's diary note shows that person was Russian adventurer Fedor Konyukhov who circumnavigated the globe in 2016.

"I opined that the person the Lord Mayor thought should be offered keys to the city was not an appropriate person to be given keys to the city," Mr Mileham said.

"She disagreed.

"The conversation ebbed and flowed but neither of us changed our views."

Ms Ellson referred to handwritten notes Mr Mileham had made following the conversation in which he had quoted Mrs Scaffidi as saying "the next CEO will do this sort of thing".

Mr Mileham said he had believed after that call that his application to become permanent CEO may have been impacted.

The inquiry heard those notes went on to detail that Mrs Scaffidi had then complained about people "slouching around and not dressing well" at the City of Perth, and that she believed Mr Mileham was partly to blame for this.

Mr Mileham will return to the stand when the inquiry resumes tomorrow, followed by suspended councillor Mr Harley.

Councillor voted on Scaffidi hotel

Former councillor Keith Yong returned to the witness box today after Mrs Scaffidi's appearance to answer questions about his role on a planning committee.

The inquiry heard that in 2016, Mr Yong voted to defer a proposal to place the Grand Central Hotel, which is owned by Mrs Scaffidi and her husband, on the heritage list.

Keith Yong regularly entertained family and friends at ratepayers' expense. ( ABC News: Charlotte Hamlyn )

When Ms Ellson put it to Mr Yong that he had not voted based on the merits of the proposal, he responded: "Yes."

But Mr Yong denied his vote was based on the interests of the building owners, saying he had followed the vote of Councillor McEvoy, who he said he believed was acting in the best interest of the city.

Later that year Mr Yong voted in support of the proposed heritage listing.

The inquiry has earlier heard Mr Yong created a sham office lease within the Perth CBD in order to nominate as a candidate in council elections.

He also admitted spending thousands of dollars of ratepayers' money inviting family and friends to eat at an exclusive dining room located on the top floor of Council House in the Perth CBD.

Editor's note September 2, 2019: The headline has been changed to clarify it was the Perth City Council, not the Lord Mayor individually, who fired former CEO Gary Stevenson.

Editor's note August 29, 2019: An earlier version of this article incorrectly reported that Mr Yong had voted against the proposed heritage listing. Mr Yong voted to defer the heritage listing.