NSW’s Awabakal Local Aboriginal Land Council (LALC) is facing allegations of corruption.

The Independent Commission Against Corruption (ICAC) has launched a public inquiry into allegations of corruption, including whether public officials acted dishonestly or in breach of their duty during the sales and development of properties from 2014 to 2016.

The LALC controls assets including commercial properties, residential land and vacant blocks in and around Newcastle, including the historic former Newcastle Post Office.

Counsel assisting the commission, Dr Nicholas Chen, said the inquiry would go over a range of allegations.

“This inquiry will investigate whether land belonging to the local Awabakal LALC, which was the registered proprietor of a number of properties in the Lake Macquarie area, was targeted for the promotion of land sale transaction schemes to investors and developers,” Dr Chen said.

“Obviously, the matters to be investigated by this inquiry are serious.”

Dr Chen said the LALC's board was “showing some signs of dysfunction” during 2014 to 2015.

Former board member Richard Green, and former jailed assistant tax commissioner, Nicholas Petroulias are alleged to have devised or utilised a scheme for the sale or development of properties owned by the land council to Sunshine Property Investment Group Pty Limited, for personal financial benefit.

“The commission is investigating whether any public official, from the LALC, acted dishonestly and or in breach of their duty as a board member in relation to a scheme involving proposals for the sale and development of properties from 2014 to 2016 owned by the land council,” chief commissioner Peter Hall QC.

“The commission is also examining whether any person or persons encouraged or induced any Awabakal LALC board director to dishonestly or partially exercise any of their official functions in respect of the sale and development scheme and any other land council property, or otherwise engaged in conduct connected with corrupt conduct within the meaning of the Independent Commission Against Corruption Act 1988.”