A popular former Sydney mayor says she has a “gut feeling” allegations a large developer paid “significant funds” to sway council staff are true, an inquiry has heard.

The inquiry has also heard she believes the developer’s and council’s actions contributed to her being denied preselection before the 2021 local election.

Former Hills Shire Council mayor Dr Michelle Byrne gave evidence to the NSW parliamentary inquiry investigating allegations of impropriety against the northwest Sydney council on Thursday.

The probe was sparked in 2022 by Liberal MP Ray Williams, who made the claims under parliamentary privilege. He claimed Liberal party members and a Hills councillor had been “supported financially” by developer Jean Nassif to install councillors to help push through development applications lodged by his company Toplace.

Dr Bryne, who was known to be hesitant towards development, said that while she didn’t have “any evidence” of “money changing hands” her “gut feeling” was that pro-developer attitudes lost her preselection.

“It did worry me that there was an influence on certain individuals to deliver certain outcomes. Again, I have no evidence that that’s what was occurring,” she told the inquiry.

When asked if she believed Mr Williams’ allegations, she responded: “I would, because it’s the only thing that makes sense”.

During Wednesday’s hearing it was claimed NSW Premier Dominic Perrottet’s younger brother, Jean-Claude, and fellow Liberal powerbroker Christian Ellis asked Sydney businessman Fritz Mare for $50,000 to help unseat longtime federal Liberal MP Alex Hawke in an alleged attempt at branch stacking.

Committee member John Graham also highlighted a conservative Liberal party faction called the Reformers, who he said was allegedly founded by Mr Ellis.

Dr Byrne said that while she “didn’t know much” about the Reformers, she said “you could feel that push to try and take over the area”.

“I knew that he (Christian Ellis) was recruiting through the Reformers. I think it was not a secret,” said Dr Byrne.

The former mayor also questioned the timing of the inquiry on the “eve of a state election” and the potential for “mudslinging” over the allegations made by Mr Williams.

Committee chair Sue Hugginson said there have been difficulties with summoning four witnesses to present evidence to the inquiry, including Mr Ellis, his mother and Hills Shire councillor Virginia Ellis and Jean-Claude, and his brother Charles Perrottet.

The committee has since engaged the services of “professional process servers” under the Parliamentary Evidence Act to summon the witnesses, which Labor committee member Penny Sharpe described as “unprecedented”.

On Thursday, the NSW Premier faced a barrage of questions over the whereabouts of his brothers, ultimately telling reporters to “leave my family out of it”.

“I’m here elected to represent the people of NSW. The Labor Party are playing silly games with my family,” he said.

“Ray Williams never raised issues with my siblings in the parliament.

“He did not, so leave my family out of it.”

The inquiry will continue next week.

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