A senior NSW planning official has denied claims she used inside information to profit from major changes to zoning rules.
The Department of Planning bureaucrat, Katie Joyner, was stood down from her role as director for the City of Sydney and eastern district over allegations she tried to cash in on a state government-driven housing overhaul.
Shadow attorney-general Alister Henskens on Thursday accused an unnamed official under parliamentary privilege of buying a home on Sydney's north shore before details of the Minns government's housing plan were publicly known.
The Liberal MP, who represents the north shore seat of Wahroonga, said a whistleblower had provided corroborated information that pointed to the official trying to set up a "property syndicate" with neighbours shortly after moving to the area.
The official passed confidential information on to residents, who were encouraged to sell their properties to a developer with a promised "significant uplift" in values because of likely upcoming housing policies, Mr Henskens said.
The matter has been referred to the Independent Commission Against Corruption and the official was later revealed to be Ms Joyner.
But she categorically denied the accusations against her in a statement on Wednesday, saying she had "at all times always acted with the utmost propriety".
"I am seeking legal advice about what I consider to be defamatory statements made against me ... and intend to exercise my full legal rights against those who have defamed me," Ms Joyner said in a statement via her lawyer.
Weeks before Christmas, the state Labor government announced a major planning overhaul that included snap rezoning around 40 existing or planned transport hubs to allow up to 210,000 new dwellings.
Mr Henskens said he was "deliberately careful" to avoid using specific details such as names and suburbs to protect the identity of his informant and other residents, but the official's property was in one of the transport zones.
The department has confirmed Ms Joyner has been placed on paid leave pending further investigation.
NSW Premier Chris Minns previously described the allegations as distressing, adding that his government took all corruption claims seriously.
