Paul Pisasale's former driver felt "threatened" by the former Ipswich mayor when he allegedly asked him to modify his statement to the Crime and Corruption Commission, a Brisbane court has heard.
Dressed in a black suit and blue tie, Mr Pisasale faced court on Wednesday over two charges of attempting to pervert justice.
It is alleged the 65-year-old contacted witnesses who had given statements to the Crime and Corruption Commission in an attempt to pervert the course of justice.
Prosecutors objected to the former councillor's application for bail, tendering documents including a sworn statement from Mr Pisasale's former driver, Stephen Potts.
"(Mr Potts) states that he believes that the defendant in dictating to him what he was to say to the CCC was attempting to modify the statement he had already given to the CCC," Magistrate Penelope Hay said.
"He states, and I quote: 'I felt threatened by Pisasale saying that this could be bad for me in that I had misused the vehicle as in he would get me in trouble somehow. Pisasale dictated quite clearly to me what he wanted me to say which is clearly not the truth and not what I told the CCC in my original statement, which is the truth'."
Police prosecutor Sergeant Matt Kahler raised concerns Mr Pisasale, who is also facing three other charges including extortion, could commit further offences by contacting witnesses.
The bail affidavit and related documents were tendered to court and sealed by Magistrate Hay.
Defence solicitor Glen Cranny said there was a concern that some of the statements tendered to court were "absent really of any context".
He said his client rejected the allegations.
Mr Pisasale was due to face court earlier in August on two charges of perverting the course of justice, but instead remained in a New Farm clinic where he is being treated for mental health issues.
During the August 8 hearing, Magistrate Anthony Gett said he may issue an arrest warrant for Mr Pisasale, who must show why he should be granted bail.
But Mr Pisasale arrived at court on Wednesday morning and was granted bail on strict conditions, including a ban on contacting anyone employed by Ipswich City Council or formerly employed from January 2011 onwards, with the exception of his relatives who work at the council, including his brother councillor Charlie Pisasale.
The court heard Mr Pisasale was not considered a flight risk and was undergoing a treatment program at the New Farm clinic that necessitates a high level of supervision.
"I must say, but for that residency at the clinic, I may well take a different view in relation to the bail application," Ms May said.
"However, I am satisfied that the imposition of further more stringent bail conditions will appropriately ameliorate against the risk of the defendant committing further offences.
"Any attempt to communicate with persons who may be in a position to give evidence in relation to the issues that surround him would be foolhardy and self-defeating."
Mr Pisasale is required to reside at the New Farm clinic and comply with the requirements of his mental health treatment regime.
Outside court, Mr Pisasale said his health was not great and thanked the staff at the New Farm Clinic for helping him get back on his feet.
"I'm getting there," he said.
When asked about the serious allegations, Mr Pisasale said he wanted to "let the process happen".
"It would be not right of me to talk about the case," he said.
The matter was adjourned to September 25.
- with AAP
