An unnamed Daily Telegraph source said Mr Maguire opposed laws that would strip corrupt former ministers Ian Macdonald and Eddie Obeid of their parliamentary pensions in a closed-door party room meeting.

Labor councillor Dan Hayes said he was “pretty shocked and disappointed” to read the claims.

“Of all the times Daryl could have gone against his party – gutting TAFE or forced amalgamations or greyhound bans – all the times he could have stood up but didn’t, he chose to protect parliamentary pensions,” Cr Hayes said.

Mr Maguire said the “factually incorrect” Daily Telegraph article was being seized as a “grubby attempt” at political benefit.

“No-one in their right mind would suggest crossing the floor to protect these crooks,” Mr Maguire said.

“These were Labor MPs that blackened state politics and this feeble attempt is the lowest gutter politics I’ve seen, it’s shameful.”

Presently MPs convicted of a serious offence – punishable by at least five years’ imprisonment – can keep their pensions if they are not charged while in office.

The legislation was flagged by then-Premier Mike Baird after Obeid’s conviction in relation to lobbying over commercial leases at Circular Quay in which his family held an interest.

Obeid was sentenced to a maximum of five years in jail for misconduct in public office earlier this year.

A jury found Macdonald guilty of two counts of wilful misconduct in public office and he faces sentencing on Friday.