Jean Nassif, the former director of collapsed Sydney company Toplace, gave evidence via videolink from his home in Beirut to a NSW Independent Commissioner Against Corruption hearing on Monday.
The inquiry is investigating allegations Liberal operatives took prohibited donations in return for furthering Nassif's interests, including harming the reputation of former NSW Liberal minister David Elliott.
Mr Elliott, who was a public critic of Nassif's developments, claims he was pushed out of the party by a right-wing faction known as the Reformers when his seat was abolished before the 2023 election.
Nassif, who is wanted by NSW Police over fraud allegations, reportedly fled to Lebanon in 2022.
He told the inquiry he was prepared to "speak his heart", going on to allege Mr Elliott blocked his developments in western Sydney because he was "racist" and "corrupt".
Mr Elliott previously told the inquiry it was because he had received complaints from voters that the properties were defective.
Nassif said he then vented his frustration about Mr Elliott - as well as other members of the centre-right faction of the NSW Liberal Party - to former prime minister Tony Abbott at a function.
He also spoke to Liberal figure JP Abood, who advised him seek help from lobbyist Jeremy Greenwood, as he was part of a hard-right faction that was hoping to "take control" of the Hills District in northwestern Sydney.
Nassif went to a meeting with Mr Greenwood and lobbyist Christian Ellis, who are both people of interest to the inquiry.
He said he agreed to give "the boys" $1 million to get two of his projects that had been on hold for years approved.
The money was needed for recruitment and Liberal activities, the inquiry heard.
Nassif's employee Sharangan Maheswaran was involved in the negotiations, he said.
The inquiry heard a recording of a phone call between Nassif and an associate - translated by the commission from Arabic into English - during which Nassif bragged about owning more than half of the government.
He was heard in the call saying he was considered the "Godfather" of the Liberal Party and was responsible for getting rid of Mr Elliot's seat.
Nassif denied paying the lobbyists to enlist the help of former premier Dominic Perrottet's brother Charles, another party operatives, to influence political outcomes.
"I was not involved with it. I don't care who rules the country," he said.
However, he said he later forged a friendship with Charles Perrottet, who was tasked with convincing Nassif to continue paying the lobbyists when he halted payments because of a perceived lack of progress on his developments.
When he faced the inquiry earlier in September, Mr Perrottet denied taking money from Nassif in exchange for political outcomes, saying any promises he appeared to make were lies.
Earlier on Monday, the inquiry heard of an alleged blackmail plot against former Strathfield mayor Matthew Blackmore.
Mr Blackmore said he was subjected to a campaign of pressure and surveillance by Mr Maheswaran - who was a Labor councillor at the time as well as a Toplace employee - after he backed out of a deal to hand over the leadership to a different Labor councillor before the 2023 state election.
The decision agitated Mr Maheswaran and upset Labor mayor-to-be Karen Pensabene, Mr Blackmore told the inquiry.
The pair sought a series of meetings before Mr Maheswaran turned up the heat, he said.
Mr Blackmore claimed Mr Maheswaran said: "What you've got to understand, Matthew ... I've got a reputation in the party that if I don't like someone, they don't get away with crossing me".
It would take just six weeks to fell Mr Blackmore, he allegedly was told.
The commission is investigating whether Mr Maheswaran, and/or Ms Pensabene's conduct involved dishonest or distrustful practice in breach of public trust.
Nassif will continue giving evidence on Tuesday, while Mr Maheswaran is due to appear on Friday.
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