“He was a very big donor, probably outside the trade union movement, the biggest donor.” Mr Dastyari, who was forced to resign from federal politics over his connection to Mr Huang in 2017, said NSW party boss Kaila Murnain revealed to him in 2016 that she had concerns about Mr Huang and the suspect donations. Ms Murnain, 32, revealed to the ICAC on Wednesday she had been told by then-MP Ernest Wong that Mr Huang had illegally donated to the party in 2015. Ms Murnain, who was suspended as general secretary by the Labor Party on Wednesday night for her involvement in the scandal, cried as she gave evidence on Thursday. Loading Replay Replay video Play video Play video

Ms Murnain agreed that she should have told the NSW Electoral Commission everything about the suspect donation when they were investigating in late 2016. “I was scared for the office and the reputation of the party and doing my best to make sure that I followed that advice and I obviously recognise now that’s something I shouldn’t have done and I should have made different decisions,” Ms Murnain said. She said she confided in Mr Dastyari on the same day she was told of Mr Huang’s involvement. While the timing of the pair’s meeting was subject to scrutiny, Mr Dastyari agreed he met with Ms Murnain on the evening of September 16, 2016, where he told her to “cover your arse” and get immediate help from lawyers as he drove her around the city. “Kaila was shitting herself, right? She was very distressed, she was very upset, she was very, you know, she’s not in a great state …” he said.

Chinese political donor Huang Xiangmo on the balcony of his Mosman home. Credit:James Brickwood Mr Dastyari, who had previously held the position of NSW Labor general secretary, was adamant Ms Murnain said Mr Huang had been involved. “I recall that Ms Murnain specifically singled out Huang Xiangmo as someone she was concerned about,” Mr Dastyari said. “She was incredibly distressed.” But Ms Murnain said when she told lawyer Ian Robertson, he told her to stay quiet and forget what Mr Wong had told her. The inquiry centres around a March 2015 Chinese Friends of Labor fundraising dinner, where a dozen alleged straw donors were used to disguise Mr Huang’s illegal cash donation.

Witness and one of the 12 alleged straw donors Steve Tong on Wednesday revealed to the inquiry he had never made a donation, and claimed his property development bosses at Wu International had filled out a donation sheet on his behalf. Loading The inquiry has heard Mr Huang delivered the cash in a plastic Aldi shopping bag to Jamie Clements at Labor headquarters in April 2015. In his private evidence, Mr Dastyari said after Mr Clements succeeded him as general secretary in 2013, he had “effectively maintained” a donor relationship with Mr Huang. “I came to the conclusion a relationship was closer than I realised when after he left the party office he went to work for him,” he said.