Former New South Wales Labor powerbroker Joe Tripodi has admitted to being involved in a smear campaign against fellow government MP Jodi McKay.

The Independent Commission Against Corruption (ICAC) is investigating alleged Liberal party campaign donations and also probing the actions of Mr Tripodi and another Labor MP, Eric Roozendaal.

Counsel assisting the inquiry Geoffrey Watson SC questioned Mr Tripodi about his involvement in a leaflet campaign designed to discredit and unseat Ms McKay.

She had stood in the way of a proposed coal loader in the dying days of the last Labor government, supporting instead a rival proposal for a container terminal at the same site.

It was alleged Mr Tripodi improperly took steps to help Nathan Tinkler's development firm, Buildev, as it lobbied for the coal loader.

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Mr Watson asked Mr Tripodi why he helped Buildev with the distribution of a pamphlet campaign entitled "Stop Jodi's Trucks"?

Mr Tripodi told ICAC he did not commission the work and that it was done without his knowledge.

He said he became involved because his printer Vincent Fedele asked for his help.

"Mr Fedele told me that that was his job," Mr Tripodi told the inquiry.

He said he told Mr Fedele: "I wish you wouldn't be doing this job".

"That's tommy rot, isn't it," Mr Watson remarked.

Mr Tripodi said he removed the "political flavour" of the leaflets and admitted to providing some of the wording.

He said he unwittingly became the point of contact for the flyers, which he regretted, but he felt no sense of loyalty to Ms McKay even though she was a Labor colleague.

"No, none at all," he said.

Mr Tripodi told the hearing there had been instances where he believed Ms McKay had been maligning him in the media, but insisted the pamphlet campaign was not "payback".

"No, it was not," he said.

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Former Labor premier Kristina Keneally told ICAC she was aware of a smear campaign against the then Newcastle MP Jodi McKay.

When asked whether she knew that former Labor powerbroker Joe Tripodi was involved in the 'Stop Jodi's Trucks' leaflets campaign Ms Keneally replied "goodness, no".

She told the hearing it would be the "ultimate act of betrayal to campaign against or work against an endorsed candidate".

The former premier was also asked about her knowledge of a leaked treasury document which related to a container terminal at Newcastle which was supported by Ms McKay.

Ms Keneally told ICAC she became aware when Jodi McKay rang her.

The corruption watchdog was told Ms Keneally then rang the then treasurer Eric Roozendaal to ask if he had leaked the document or knew who did.

She told the hearing Mr Roozendaal "emphatically denied" he was behind the leaked document and that he had been very angry and believed it reflected badly on him.

Ms Keneally has also been questioned about her contact with Opposition Leader John Robertson's chief of staff, who had temporarily been a junior staffer in her office in late 2010.

She told the hearing Mr McNamara was responsible for compiling a potential list of projects that MPs could campaign on.

The hearing continues.