Premier Mike Baird declared himself a “friend” to thousands of Muslim worshippers at Lakemba mosque, but refused to be drawn on the government’s handling of a bitter row that has engulfed Sydney’s Arab and Jewish communities.

Celebrating the end of Ramadan on Monday, Mr Baird opened his speech with the Arabic greeting “Assalamu Alaykum” – meaning “peace be upon you” - saying the festival was a time to reflect on tragedies around the world, including the loss of innocent lives in the Middle East.

His appearance at the mosque followed the resignation of NSW Communities Relations Commission chairman Vic Alhadeff on Sunday, whose comments defending Israel's attacks on Gaza two weeks ago drew condemnation from Arab and Muslim groups.

The furore raised serious concerns about the government’s decision to appoint Mr Alhadeff, who also is chief executive of the NSW Jewish Board of Deputies, to the delicate community relations role.

There have also been questions over why the government and the Community Relations Commission failed to stem the controversy, which dragged on for more than two weeks, making Mr Alhadeff’s position increasingly untenable.

At a later press conference, Mr Baird said Mr Alhadeff solely made the decision to quit the government-appointed role

“I respect him. He has spent a lot of his time and career bringing communities together and bringing harmony,” Mr Baird said.

“He believed he couldn’t achieve that harmony and he has decided to stand down. I accept that position and thank him for the work he’s done.”

Asked whether the government should have better managed the perceived conflicts of interest arising from Mr Alhadeff’s dual roles, Mr Baird said: “I don’t think we need to reflect on events past, it's about looking forward."

He said the government would take its time selecting Mr Alhadeff’s replacement, adding the only criteria was that he or she “is passionate about this great state,  passionate about working with every community … and passionate about bringing harmony.”

Mr Baird earlier told the crowd at Lakemba Mosque he had struggled to fast last Thursday before a Muslim iftar dinner he hosted at NSW Parliament House.

“Fasting for a day was very hard, I don’t know how you’ve done it for a month. I give the commitment that next year I will do more,” he said.

He added that while he was premier, the Muslim community would have “a friend in me … one who listens to you, one who responds and one who works with you.”

Addressing worshippers, Lebanese Muslim Association president Samier Dandan alluded to recent events in NSW that “have reflected the lack of understanding and knowledge that exists on how to engage with our community”.

“The values that we share are much greater than those we differ on. Let us focus on unity through commonalities than division through differences,” he said.

In a statement, NSW Greens MP Mehreen Faruqi called on the government to appoint a Community Relations Commission chair who was “committed to the spirit of the role” and did not face a conflict of interest.

“Mr Alhadeff’s comments regarding the war in Gaza were insensitive and unacceptable,” she said, adding the chairperson should “perform the role in the spirit of inclusiveness and peace”.

The controversy erupted earlier this month when Mr Alhadeff sent an email in his Jewish Board of Deputies role accusing Palestinian militants of war crimes and saying “all options are on the table” in Israel’s defence of its citizens.

He later issued an apology for the offence the email caused, but did not withdraw the comments.

On Sunday he announced “with considerable regret” that he was resigning from his community relations role, adding he would continue his work towards inter-cultural harmony “as a representative of the Jewish community”.