Claims developer pressured employees in NSW Labor donation scandal: ICAC

The anti-corruption watchdog has heard a property developer was putting pressure on his own employees after using their names to disguise dodgy donations to NSW Labor. Their lives were "turned upside down" and one man killed himself before facing the investigation, the commission heard.

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A property developer has been accused of distancing himself from an alleged Labor Party donation scheme by pressuring an employee who killed himself before facing corruption investigators.

The Independent Commission Against Corruption Inquiry is investigating whether exiled Chinese billionaire Huang Xiangmo was the true source of $100,000 which was allegedly handed to NSW Labor boss Jamie Clements after a fundraising dinner in March 2015.

The now infamous ‘Aldi bag of cash’ had allegedly been broken up into $5000 portions and given to NSW Labor and Country Labor under the names of wait staff at a Sydney Chinese restaurant among others.

Alex Wood, formally known as Alex Wu, runs the Australian arm of Wu International. Picture: AAP/Paul Braven.

The ICAC, on Tuesday, heard property developer Alex Wood had a "student and teacher" relationship with former Labor MP Ernest Wong, who is accused of being at the centre of the donation plot.

Mr Wood, who runs the Australian arm of his family's company Wu International, was accused of putting his deputy's name, Quanbao "Leo" Liao, and another employee, Steve Tong, on donation forms for Country Labor.

Dr Liao killed himself in June 2018, the night before he was expected to front the ICAC and give evidence on the matter.

"You were putting pressure on Dr Leo to answer (investigators') questions in a particular way so as to avoid you being implicated," Counsel assisting Scott Robertson put to Mr Wood.

"(And) during your discussions with Mr Tong you said words to effect of 'stick to what you said earlier it will be fine'."

Mr Wood was accussed of pressuring his employees to lie to ICAC. Picture: AAP/Paul Braven

Mr Wood’s employee took his own life before facing the commission. Picture: AAP/Paul Braven

The developer denied the proposition he had "pressured" the men to lie to both the NSW Electoral Commission and the ICAC during their respective investigations.

"I did not use (Mr Tong's) name," he said.

"I didn't not pay the donation – it's Dr Leo not me."

“Are you just trying to blame Dr Liao because he’s passed away and can’t defend himself?” Mr Robertson asked before Mr Wood denied it.

Chief commissioner Peter Hall QC pressed on with further propositions, noting Mr Wood seemed to be making up his evidence as he went along.

"You agreed with Mr Wong that you'd persuade Dr Liao and Steve Tong to put themselves forward and act as pretend donors – false donors, not real donors – in order to cover up donation moneys that were coming from another source," he put to Mr Wood on Tuesday.

"What do you say that because you're a prohibited donor – a property developer – you said you'd work on Dr Liao and Mr Tong so you wouldn't have to put your name on anything as a donor?"

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Mr Hall said Wu International appeared to be "very much involved in this plan".

"We now know the two employees of Wu International caught up in this scheme (Mr Tong and Dr Liao) became two very worried men," he said.

Mr Wood, 36, made repeated and often rambling denials with the help of a translator.

He attempted to explain Mr Tong's accusations, made in "white hot rage" filled emails to his boss, that his name had been used for a donation.

"I am deeply concerned about the matter and how it will progress," Mr Tong wrote to Mr Wood in May 2017.

"I hereby give you one week to have the matter dealt with once and for all. Failing that I would have to reveal all matter(s) to the Electoral Commission."

Mr Wood told the ICAC he was like part of a "sandwich" but denied he'd been involved in the plan that Mr Hall said "turned (Mr Wong and Dr Liao's) lives upside down".

The investigation will resume on Wednesday.