A former western Sydney council official engaged in corrupt conduct by taking sexual favours and up to $40,000 from sex workers and brothel operators, the NSW corruption watchdog has found.

The Independent Commission Against Corruption (ICAC) made the findings against Wade Fryar, who was sacked from Parramatta Council as a result of an investigation in February 2007.

The report found that, between 2003 and February 2007, Mr Fryar received free sexual services from at least five prostitutes and up to $40,000 in corrupt payments from brothel operators.

In return, Mr Fryar did not take action against them for using unauthorised premises for prostitution, the report found.

The ICAC also found that on some occasions Mr Fryar had warned brothel operators that a council inspection was to be carried out.

"Although Mr Fryar deliberately manipulated the system, it had elements that gave him the opportunity to act corruptly without detection for several years," ICAC Commissioner Jerrold Cripps, QC, said.

The ICAC also made corruption findings against the sex workers and brothel operators who gave the benefits to Mr Fryar.

Mr Cripps said the matter should now be forwarded to the Director of Public Prosecutions to decide if criminal charges could be laid.

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