Inquiry hears Ernest Wong met with an alleged straw donor who was angry his name appeared on Labor donation records

This article is more than 1 year old

This article is more than 1 year old

The former state Labor MP Ernest Wong has denied telling a key witness to an anti-corruption probe to “keep his mouth shut” during a private meeting at state parliament last year.

Wong was again repeatedly accused of lying and “making all this up as you go along” as he continued his evidence to the Independent Commission Against Corruption on Monday.

The commission is investigating whether Huang Xiangmo, a Chinese billionaire and property developer, funnelled $100,000 in cash to NSW Labor in breach of state laws barring property developer donations.

Icac has been particularly focused on a Chinese Friends of Labor fundraising dinner held shortly before the 2015 state election, and previous evidence claimed a series of straw donors, or fake donors, may have been used to mask the origins of Huang’s money.

It is alleged that Wong helped procure false donation records following the 2015 dinner.

The commission heard Wong had met with two key witnesses after the anti-corruption investigation began in January last year. That included a meeting in his parliament office with Steve Tong, one of the alleged straw donors, who was angry that his name had been falsely used on records purporting to show a $5,000 donation to Labor.

Visitor records show Wong met with Tong in September 2018.

“He did say that he was not the actual one who paid that particular donation,” Wong said.

Counsel assisting, Scott Robertson, accused Wong of using the meeting to tell Tong to “keep his mouth shut”.

Robertson said: “You said to him he shouldn’t say anything?”

Wong responded: “No. I just ask him, if you are sure it’s not your money, then tell them.”

The chief commissioner, Peter Hall, asked why Wong had not reported the meeting to law enforcement authorities, given someone had just confessed to him a breach of electoral laws. Wong said had questions about Tong’s motives and could not be “100%” sure the man was telling the truth.

Earlier, Robertson accused Wong of arranging for Huang to drop off the $100,000 to Labor’s Sussex Street headquarters following the dinner.

Huang is alleged to have turned up at Labor head office several weeks after the dinner with a cash-filled Aldi shopping bag, which he handed to the then general secretary Jamie Clements.

“You had in fact sold the head table to Mr Huang Xiangmo for the Chinese Friends of Labor dinner in 2015 for $100,000. You arranged with Mr Huang Xiangmo to have that money delivered to head office?” Robertson said.

Wong denied the suggestion.

“But the money that Mr Huang delivered to head office was the money he was paying for the right for him and four guests to sit on the head table?”

Wong again rejected the allegation. He was then accused of engaging in a scheme to have individuals falsely fill out donation disclosure forms claiming they had given Labor $5,000 in connection with the dinner.

Internal emails show Wong asking an acquaintance – Quanbao “Leo” Liao, a senior figure at property development firm Wu International – to send him two signed donation disclosure forms after the fundraising dinner.

Wong attached a partially pre-filled disclosure form in his email to Liao, which had been scanned at his parliamentary office.

It listed a donation amount of $5,000, just below the legal maximum, and struck out all possible payment options aside from cash.

An email was returned to him with signed donation declarations from Tong, a Wu International worker, and Liao. Tong has since denied he ever gave $5,000 to Labor and Liao took his own life last year, before giving evidence to Icac.

“I suggest to you that what you did was that you engaged in a scheme that involved getting people like Dr Liao and Mr Tong to sign disclosure forms, even though you well knew they hadn’t contributed a cent to the Chinese Friend of Labor dinner?”

Wong rejected the suggestion.

Wong also denied the money dropped off at Sussex Street came from Huang.

He said that on the night of the fundraising dinner Huang offered to take a bag of cash raised from other donors to Labor’s Sussex Street headquarters. Wong said Huang was planning to visit the party’s general secretary anyway, and offered to take the money with him.

“I need someone to take it back to the office, then Mr Huang said ‘I will be able to take it because I’m going to the head office to see the general secretary’,” Wong said.

The chief commissioner, Hall, asked whether this had shocked him.

“Did this come as somewhat of a surprise to you? Here was this alleged billionaire offering to do a delivery run with a bag full of cash?” Hall said.

Wong said he was not surprised, because Huang would have wanted to show his face to Labor. “Not at all. My gut feeling at the time... he was someone who would like face, because he has not contributed to this event.”

Donors to political parties are required to fill out disclosure forms to accompany their contributions. Labor has a policy of not accepting donations without such forms.

Wong said the forms accompanying the cash were in a separate bag. Wong said he took that bag home with him. Robertson accused Wong of inventing the story.

“Mr Wong are you just making all this up as you go along?” Robertson asked.

Wong replied: “Look, Mr Robertson, if you say that I am making this up… I am just trying to put my memories together as best as I can.”

The hearing continues on Tuesday, when Wong will continue to give evidence. Last week, evidence about Huang’s alleged donations prompted the suspension of the NSW Labor general secretary, Kaila Murnain. Murnain said she had first learned of the potentially unlawful donation from Wong in 2016, but had followed instructions to keep it quiet.