The Blue Mountains Liberal Party has failed to take any action over a senior party official who was accused of "skulking" outside of the house of Liberal Party councillor Daniel Myles earlier this year.
Instead they have "promoted" him, according to a senior Liberal Party source.
Cr Myles had called on Timothy Donelan - president of the Blue Mountains Local Government Conference of the Liberal Party - to resign following a heated incident outside his Springwood home in July.
Cr Myles confronted Mr Donelan after finding him sitting in a parked car near his home.
The former mayor alleged Mr Donelan hoped "to catch me on video taking a lift to council with the Labor mayor" as part of a plan to knock him out of pre-selection contention in next year's council elections.
Mr Donelan strongly denied he was in the street to video Cr Myles for any "nefarious purposes".
A camera sitting on his passenger seat had a faulty battery, he said.
Liberal Party branch members voted down a motion to discipline Mr Donelan for his actions at a meeting of the Blue Mountains Local Government Conference on Sunday, September 29.
Mr Donelan had earlier been elected to the position of treasurer of the Blue Mountains State Electoral Conference.
"Rather than be disciplined for his actions in visiting Myles' house, he's been given a promotion," said a senior Liberal Party source.
Cr Myles spoke publicly about the incident near his home at a council meeting in July.
He said there was a pro-development faction in the local Liberal Party, which he described as a "cabal", who wanted to oust him and Ward 2 Liberal Party Cr Chris Van der Kley.
When contacted for comment last week, Cr Myles said: "I can't comment as I am still waiting on the NSW State Director to rule on my complaint against Donelan."
