Opposition leader Chris Minns was speaking to Ben Fordham on 2GB about the recent conduct of Mihailuk, who is the MP for Bankstown.
Mihailuk had accused NSW Upper House hopeful Khal Asfour, the mayor of Canterbury-Bankstown, of links to corrupt former minister Eddie Obeid.
Minns said he had told Mihailuk she could not use parliamentary privilege to launch such accusations while a member of the shadow cabinet.
“I haven’t heard back from her,” Minns said.
“So I’ve come to the conclusion, reluctantly, that she can’t stay in the shadow cabinet.”
Mihailuk is named as Shadow Minister for Natural Resources on the NSW Parliament website.
Asfour has rejected Mihailuk’s allegations.