Inquiry told Kaila Murnain saw large bag of cash at ALP state headquarters following a visit by Huang Xiangmo

This article is more than 1 year old

This article is more than 1 year old

The current New South Wales Labor secretary saw an Aldi bag filled with cash after a visit to the party’s state headquarters by Chinese billionaire and banned donor Huang Xiangmo, a corruption inquiry has heard.

The Independent Commission Against Corruption inquiry is examining the circumstances behind $100,000 in cash donations given to NSW Labor in 2015, about the time of the state election.

The anti-corruption watchdog has heard evidence that the money came from Huang, a prolific political donor who was banned from re-entering Australia following concerns from security agencies. Huang is prohibited from donating in NSW due to his links to the Yuhu Group, a property developer.

The Icac has already heard that 12 straw donors, or fake donors, may have been used to mask the true origin of the money. One of the donors has previously said that he was shocked to find his $500 contribution was inflated to $5,000 on official party records.

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On Tuesday, the inquiry heard that the current NSW Labor secretary, Kaila Murnain, saw the Aldi shopping bag filled with cash after Huang visited Labor’s Sussex Street headquarters in April 2015.

The then NSW Labor boss, Jamie Clements, handed the money to Labor’s community relations director, Kenrick Cheah, to count and process, the inquiry has heard.

Cheah gave evidence that Murnain, then the assistant NSW general secretary, knew the bag was filled with a “sizeable” amount of cash.

Cheah took the bag home because he said there were no secure places to put it in the office.

“Pretty sure Kaila was the one who said ‘be careful’, just in terms of safety,” Cheah said.

Murnain is expected to be called to give evidence on Wednesday. Other witnesses have already been asked whether the large bag of cash aroused their curiosity, and what they did to ascertain its origins.

Cheah underwent a heated cross-examination by Clements’ barrister, Stephen Lawrence. It was put to Cheah that he had “made up” evidence about Huang visiting Labor HQ with the cash.

“It’s not made up at all, it’s 100% truthful,” Cheah responded.

The inquiry heard that Clements and Murnain immensely disliked each other.

Lawrence accused Cheah of making scapegoats out of Clements and Huang and trying to “divert” investigations into who really brought the money in.

“I didn’t use anyone as a scapegoat. I just told the facts as they happened to me, or as they occurred to me,” Cheah said.

Murnain has previously told Icac investigators that former state MP Ernest Wong had told her the true source of the funds was Huang.

Labor records purport to show the $100,000 came from a series of individual donors who attended a Chinese Friends of Labor fundraising dinner in March 2015.

Facebook Twitter Pinterest The head table at a Labor fundraiser dinner in March 2015, picturing former opposition leaders Bill Shorten (third from left), Luke Foley (far right) and Huang Xiangmo (second from right). Photograph: Ernest Wong/Supplied by ICAC

At the dinner, Huang was seated at the head table, along with the former Labor leader Bill Shorten.

Cheah was asked how Huang managed to get a seat at the head table.

“Because he’s a rich man. You don’t want to offend a rich and powerful guy,” Cheah said.

Chief commissioner Peter Hall asked whether being rich and powerful was a criterion for securing prime position at such functions.

Cheah said it may have been because Huang was a “luminary” in his community.

The inquiry heard that donations were usually made in a variety of payment methods, including cash, cards and cheques.

But the $100,000 given to Cheah to count was only in cash.

Hall asked Cheah whether he thought this was “highly unusual”, and whether it “aroused your curiosity”.

“Yes, it does seem unusual,” Cheah said.

Hall replied:

“Well there’s no need to qualify it, it was unusual, on the strength of your evidence that it was normal to have a mixed method of payment.”

Cheah said he took no steps to ask anyone why all $100,000 was in cash.

The inquiry continues on Tuesday, and is expected to last six weeks.