Bankstown MP Tania Mihailuk launched an extraordinary attack on Canterbury Bankstown mayor Khalf Asfour in NSW parliament on Tuesday night.
"Candidacy for such a privileged position, you would expect, warrants comprehensive scrutiny," Ms Mihailuk said.
"I raise my legitimate and longstanding concerns regarding Asfour's character and his unprincipled actions in furthering the interests of developers and identities, in particular Eddie Obeid."
The Greens have called for Ms Mihailuk's accusations to be referred to the Independent Commission Against Corruption.
"These allegations are alarming, especially coming from a sitting Labor member of Parliament," the Greens' Jamie Parker said on Wednesday.
"NSW Labor must refer these explosive allegations to the ICAC today."
Ms Mihailuk pointed to Labor's "recent woes" at the ICAC, which dogged their last term in state government.
Mr Asfour is part of a preselection battle for a spot on the upper house ticket, which involves the party choosing who would face NSW voters at the March election.
Ms Mihailuk said Obeid attended Mr Asfour's wedding, gave him a "generous gift" and propped up his tenure as mayor.
She detailed "discrepancies" in planning controls for a Bankstown central business district revitalisation plan involving property linked to the Obeids while Mr Asfour was mayor.
Ms Mihailuk said the party should not choose "tainted" figures and has promised to give more information on Mr Asfour.
"I have never taken a backwards step against corruption, and I never will. The recent attacks against me have strengthened my resolve," Ms Mihailuk said.
The latter is a reference to reported accusations of bullying and improper spending at Ms Mihailuk's Bankstown electoral office.
Mr Asfour has been contacted for comment.
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