Businessman Hilton Grugeon has hit back at claims that Newcastle is "run by a smallish group of very powerful people, well placed in the law, politics, but mainly business".
The Sydney Morning Herald ran a story on Saturday in which Geoffrey Watson SC, ICAC's counsel assisting during Operation Spicer in 2014, was quoted as making those comments and also stating: "I always felt Newcastle was an odd place".
"There seemed to be these sort of weird oligarchs, who were very wealthy, controlled particular industries, and manipulated and did things themselves," Mr Watson told the Sydney news outlet.
Mr Grugeon said this "can't be true".
"We've traditionally had Labor representation and Labor-led councils, yet everybody has been able to work together for the better outcome of the city," he said.
Mr Watson's comments followed Newcastle Labor MP Tim Crakanthorp being dumped from state cabinet and referred to ICAC over previously undisclosed family property interests.
Asked on Sunday about the SMH story, Mr Grugeon said "I expect no better from Watson. He doesn't understand Newcastle."
Mr Grugeon was part of Operation Spicer hearings after he paid former Liberal MP Andrew Cornwell $10,000 for an artwork worth a fraction of the price.
"ICAC did not find Jeff McCloy and I corrupt. And I haven't noticed our local politicians spending time in jail, like the ones from Sydney [following ICAC hearings]," he said.
Mr Grugeon added that Newcastle was a "great community" with a "great mix".
