NSW Independent Commission Against Corruption (ICAC): the case of the $100,000 cash political donation

Sometime after 2 November 2015 the NSW Electoral Commission appears to have noticed that on 12 March 2015, around two weeks before a NSW state election, an organisation known as Chinese Friends of Labor raised $138,000 from an event held in a 750-seat Chinese restaurant in Haymarket, Sydney. 

What piqued the Electoral Commission's interest was that $100,000 of this money appears to have been raised by Chinese Friends of Labor as cash from 12 donors - five of whom were employees or former employees of a second 350-seat Haymarket restaurant usually described as being serving staff, two who were related to that restaurant's general manager and two who were associated with property development company Wu International Investments Pty Ltd.

The NSW Electoral Commission began to wonder if some of the named donors were perhaps 'straw men' for one or more property developers.

Property developers are of course prohibited by law from making political donations in New South Wales. 

As members of the NSW Liberal Party will recall if they think back on the 2016 NSW Independent Commission Against Corruption (ICAC) Operation Spicer investigation into political funding which found the Free Enterprise Foundation and "Raymond Carter, Andrew Cornwell, Garry Edwards, the Hon Michael Gallacher MLC, Nabil Gazal Jnr, Nicholas Gazal, Hilton Grugeon, Christopher Hartcher, Timothy Koelma, Jeffrey McCloy, Timothy Owen, Christopher Spence, Hugh Thomson and Darren Williams acted with the intention of evading laws under the Election Funding, Expenditure and Disclosures Act 1981 (the election funding laws) relating to the disclosure of political donations and the ban on donations from property developers. Messrs Grugeon, Hartcher, Koelma, McCloy, Owen, Thomson and Williams were also found to have acted with the intention of evading the election funding laws relating to caps on political donations. The Commission also found that Craig Baumann, Nicholas Di Girolamo, Troy Palmer and Darren Webber acted with the intention of evading the election funding laws relating to the disclosure of political donations and that Bart Bassett knowingly solicited a political donation from a property developer".

On 15 January 2018, after further investigation, the Electoral Commission referred the matter of Chinese Friends of Labor & Labor Party state campaign accounts to ICAC and on 26 August 2019 public hearings in Operation Aero began. 

Five witnesses are to be called this week: Kenrick Cheah (NSW Labor community relations director), Steve Tong (former employee Wu International Investments), Kaila Murnain (General Secretary of NSW Labor), Ernest Wong (former NSW Labor MLC) and Sam Dastyari (former Federal Labor senator).

It has been alleged that Chinese billionaire property developer Huang Xiangmo was the source of the $100,000 cash donation. 

Readers might remember that this particular billionaire was the subject of allegations that he paid a five-figure sum in order to have a private lunch with Minister for Home Affairs and Liberal MP for Dickson Peter Dutton during the period he was seeking Australian citizenship.

Political tragics can follow the hearings here.