Former Labor MP Ernest Wong summoned a key witness to a donations scandal to his parliament house office, took his mobile phone from him, and then directed him to “stick” to a false story he had previously given to electoral authorities, an anti-corruption inquiry has heard.

Engineer Steve Tong was one of a series of straw donors whose names were allegedly used to mask the origins of an unlawful $100,000 cash donation to Labor from Chinese billionaire and banned donor Huang Xiangmo, the Independent Commission Against Corruption has heard.

Tong said he first realised his name had been used on a false donation record in 2015 when he was invoiced for a $5,000 donation to Labor, something he said had “dumbfounded” him.

He complained to his bosses Quanbao “Leo” Liao and Alex Wood at Wu International – a property development firm which Icac has heard has ties to Wong and other political figures. The pair allegedly admitted they had used his name for the donation, but urged him to lie to the New South Wales electoral commission.

Last year, amid investigations by the electoral commission, Tong was summoned to Wong’s office at state parliament, the inquiry heard. Tong no longer worked for Wu International, but was picked up and driven to parliament by Wu International employee Yueran “Kenny” Zhan.

Wong was waiting for them when they arrived, Tong said.

The Labor MP took Tong and Zhan’s phones from them and put them in a drawer, the inquiry heard.

Tong said he believed the politician was worried about being recorded and told the inquiry he began the meeting by saying he was “very angry” that his name had been used on donation records.

Wong responded by telling him to “stick” to the story he had been given by Liao, one of his superiors at Wu International, Tong said. Liao took his own life before giving evidence to Icac investigators last year.

“He asked me to continue to say what Dr Liao had asked me to say. But of course what Dr Liao had asked me to do was very clear,” he said.

“He was telling me not to tell the truth, to continue with the line of telling lies. But of course what Mr Wong was telling me at the time wasn’t so clear at the time or straightforward.”

Asked what he believed to be Wong’s intention during the meeting, Tong responded: “I was very clear that his intention for me was to continue with the lies.”

Tong said he barely knew the politician, was surprised to be summonsed to his office, and did not know how Wong knew what evidence he had previously given to electoral authorities.

Tong told the commission he went home and wrote down a complete recollection of the encounter because he became suspicious about being asked to hand over his phone. He said he sent the written recollection of the meeting to Zhan, of Wu International. It has also been tendered to Icac.

Zhan, the only other person in the room, has earlier given evidence that he remembers nothing of what was said during the meeting. He said he may have been playing on his phone, visiting the toilet or admiring the view from Wong’s office.

Tong said Zhan did not have his phone at the time and did not go to the toilet.

The commission also heard more about the links between Wu International and political figures. The firm’s boss, Bobby Wu, has been pictured with former prime ministers John Howard and Kevin Rudd, Tong told the inquiry.

He also said Wu was involved in the Australian Council for the Promotion of the Peaceful Reunification of China. That organisation was chaired for a long time by Huang and has been linked with the Chinese Communist Party.

In November, Tong was summonsed to give evidence to Icac. On the same night he received his summons, Tong received a home visit from Alex Wu, the most senior-ranking Wu International employee in Australia, and Zhan.

The pair came to his home. He got in their car, and the three of them drove around the streets for 10 to 20 minutes, Tong said.

“Alex said to me ‘just stick with what you had said earlier then it will be fine’,” he said.

“I said ‘OK, I’ll do what you’ve said’. That’s why on my first appearance [to Icac] I told lies.”

The inquiry continues on Tuesday before chief commissioner, Peter Hall.