The Liberal MP was reportedly targeted by the Independent Commission Against Corruption as it searched the premises of a number of NSW Liberal Party members earlier this month, according to The Daily Telegraph.
It comes after state Liberal MP Ray Williams used parliamentary privilege last year to claim members of the Hills Shire Council were paid to install councillors who would support building applications made by controversial property developer Jean Nassif.
Those allegations led to a parliamentary inquiry held earlier this year, which engaged professional process servers to search for the former premier Dominic Perrottet's brothers, Jean-Claude Perrottet and Charles Perrottet without success.
The inquiry ended ahead of the March state election, which was won by Labor. The party then signalled it would back a new parliamentary inquiry into the Hills Shire Council matters.
But that inquiry will not go ahead because ICAC is already investigating, Premier Chris Minns said on Tuesday.
"A public inquiry, when one is already being undertaken by the ICAC, was problematic for self-evident reasons," he told reporters.
Local Government Minister Ron Hoenig is also "looking closely" at steps to ensure ratepayers in the Hills Shire can be assured of the integrity of their council.
"The minister is looking closely at that particular issue and we realise we've got a responsibility to the ratepayers of that council, that they have got the confidence in the decision-making processes of that administration," Mr Minns said.
The parliamentary inquiry held before the election heard the ex-premier's brother, Jean-Claude Perrottet, and Hills shire councillor Christian Ellis sought $50,000 from businessman Frits Mare to branch stack a federal seat to usurp sitting Liberal MP Alex Hawke.
The inquiry also heard allegations that deputy federal Liberal leader Sussan Ley had been targeted by Mr Ellis, as he attempted to branch stack her seat of Farrer.
Those allegations were referred to the ICAC by the former premier.
The ICAC and the NSW Liberal Party declined to comment.
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