Contractors took cash payments to falsify vehicle examinations and driving tests, Western Australia's Corruption and Crime Commission (CCC) has been told.

The CCC is conducting public hearings as part of a wider investigation into the licensing of vehicles and drivers by Department of Transport (DoT) contractors as well as local government employees.

Counsel assisting Alan Troy told the hearing some of the witnesses had links to organised crime.

"The individuals who will be examined, some of whom are associated with organised criminal elements, have taken advantage of weaknesses in systems associated with outsourcing of services previously provided by the DoT," he said.

"They have done so simply by going to corrupt individuals who are contracted to provide public regulatory functions."

Key points: The CCC is looking at Department of Transport licensing procedures

The CCC is looking at Department of Transport licensing procedures It has heard a driving assessor took cash to pass motorbike licence tests, and

It has heard a driving assessor took cash to pass motorbike licence tests, and An inspector took money to certify an unroadworthy car as roadworthy

Today's hearing focused on Perth man Gregory Briotti, who the CCC alleged falsified driving tests in exchange for money.

The commission questioned a witness, who cannot be identified, who obtained a licence allowing him to ride a higher capacity motorcycle from the Wheatbelt in April this year.

Five days prior, he was filmed meeting Mr Briotti in the front yard of a home in Perth and handing over something that the CCC alleged was cash.

Mr Briotti was shown filling in paperwork and then handing it over to the witness.

The CCC was also shown text messages between the pair from April 14 in which Mr Briotti sent the witness his address and asked him to bring $150 to "sign a bike form".

On April 20, Mr Briotti sent the witness a message saying "bike lic legal now".

The CCC put it to the witness that he obtained the licence illegally and never did the practical test in the Wheatbelt.

The witness denied the claim and said he could not remember the exchange with Mr Briotti, because he had been "off the rails" in the past two years since his divorce.

However, he said the video "doesn't look good, that's for sure".

He also denied fraudulently obtaining an entry-level motorbike licence from Mr Briotti in 2013.

Illegal modifications approved, car on-sold

In another case, the CCC heard that in February 2014, an authorised inspector accepted cash from a man who had made extensive, illegal modifications to his car.

The inspector certified it as roadworthy without examining it.

The owner then sold the car to someone else for $20,000 and it was only on the road for several days before police forced it off.

It cost the new owner $16,000 to repair the car, but it still had serious mechanical failures and had to be sold for parts.

The hearing was told the DoT had agreements with local governments to provide data entry and payment facilities, and the CCC would also examine whether council employees had exploited the system.

Regulation 'protects public safety'

Mr Troy said transport regulatory systems existed to protect public safety and the inquiry would examine the challenges of outsourcing government services.

"The decision as to what vehicles can be driven on our roads and who may drive them is very heavily regulated for good reason," he said.

"The overall value of outsourcing services in the current circumstances should not be understated.

"However, the advantages can come at a cost if private contractors are not managed correctly and if appropriate governance is not put in place to manage the standard of the service being provided."

The Department of Transport has released a statement saying it has been providing assistance to the CCC throughout its investigation.

"We will also continue to work with the CCC to align our business to better address and respond to any emerging risks and vulnerabilities identified throughout the process," it said.

"DoT is committed to providing robust, accessible and quality services for the Western Australian community and delivering confidence in driver and vehicle safety and identity."

The hearing has been set down for eight days.