West Australian Premier Mark McGowan has written to Perth Lord Mayor Lisa Scaffidi urging her to resign over a series of controversies including not disclosing a $16,000 travel package and other gifts from BHP Billiton for the 2008 Beijing Olympics.
However Ms Scaffidi, who denies any dishonesty, is defiant and has accused Mr McGowan of interfering with a democratically-elected local government.
Before and after winning last month's election, Mr McGowan said he was investigating whether there were grounds for him to sack the council, saying it had become "a law unto itself".
Ms Scaffidi was censured on Thursday by The Local Government Standards Panel for a recent public rebuke of deputy James Limnios.
Other controversies have involved pushing ahead with a $500,000 audit of its entire operation after the recent state election and asking councillors to sign a statutory declaration stating they they had not been leaking information about the CEO's performance to journalists.
Mr McGowan reportedly urged Ms Scaffidi to "make an honourable decision" and said that the council had lost the confidence of the state government.
The mayor said she first she knew of the premier's letter was from a journalist, implying it was leaked to the media before she received it.
"How far does this newly-elected state government intend to interfere with local government?" she told reporters.
"What a sorry day this is for Western Australian democracy and the citizens of Perth."
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