The cause of a roof blown off an apartment block during a storm which left hundreds homeless will not be examined by a public inquiry.
Instead, Commissioner Richard Beasley SC said the inquiry into misconduct allegations would explore the council's handling of the development, headed by Auburn councillor Ronney Oueick's company, BBC Development.
Insurer AIG has refused to foot the repair bill, claiming the roof of the building contained structural defects.
It said the storm was not the cause of the damage.
But on the fourth day of the Auburn Council inquiry, Commissioner Beasley said exactly what caused the damage was outside of the terms of reference.
"The inquiry cannot enquire into whether the roof came off because of any alleged breaches of the Australian Building Act," he said.
Council's handling of Lidcombe apartment development 'relevant'
He said it would instead focus on the council's dealings with the development.
"What is relevant to the inquiry is what members of council staff may or may not have done," he said.
Local Government Minister Paul Toole suspended Auburn City Council earlier this year and announced a public inquiry to investigate claims that councillors were misusing their positions.
He said there were concerns some councillors may have been using their positions to obtain significant planning outcomes for themselves, relatives and council colleagues.
Earlier this month, Auburn City Council was absorbed by the newly created Parramatta and Cumberland councils, which were formed under the State Government's amalgamation program earlier this month.
Controversial former Auburn City Council deputy mayor Salim Mehajer will be called to give evidence at the inquiry.
It will look at the council's response to the street closure for Mr Mehajer's wedding at Lidcombe in western Sydney last year.
Mr Mehajer gained notoriety after the wedding and was later fined $220 by the council.
The inquiry is expected to last up to three weeks.
