ICAC investigating donations made at fundraising dinner held by Chinese Friends of Labor

NSW Labor has been forced to rip $100,000 from its election war chest amid a corruption investigation with fears the cash from a fundraising dinner could be “tainted”, The Daily Telegraph can reveal.

• Questions raised over Chinese donors after ICAC raid

NSW Labor has been forced to rip $100,000 from its election war chest amid a corruption investigation with fears the cash could be “tainted”.

Labor Leader Michael Daley said on Monday the money would be “quarantined” after revelations that the Independent Commission Against Corruption was investigating donations made at a fundraising dinner held by Chinese Friends of Labor in Sydney in 2015.

The dinner was attended by federal ALP Leader Bill Shorten as well as state MPs Chris Minns, Ernest Wong and Shaoquett Moselmane.

Mr Daley said if ICAC found any colleagues had acted corruptly they would be booted from the party.

Labor leader Michael Daley said he will boot out anyone who is found to be misbehaving. Picture: AAP Image/Dan Himbrechts

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“I won’t tolerate in my party people misbehaving and if anyone is found, when this investigation is complete, to have acted improperly there will be no room for them in the party I lead,” Mr Daley said

In December, ICAC raided NSW Labor’s office in Sussex St as part of an investigation into the donations at the 2015 dinner.

NSW Labor said on Monday it would move the money in question into a trust with an accountancy firm while the investigation took place.

The fundraising dinner held by Chinese Friends of Labor in Sydney in 2015. Picture: Facebook

“Should any investigation find impropriety attached with a fundraising dinner held by NSW Labor in early 2015, these funds will immediately be transferred to the NSW Electoral Commission. This arrangement has been reached following consultation with the NSW Electoral Commission,” a party spokesman said.

Mr Daley said he didn’t know if there was “tainted money in those donations”.

“But if there is I don’t want a bar of it. We won’t be using any of it in the campaign.”

The Chinese Friends of Labor dinner in question was organised by Mr Wong, an upper house MP, who last year was rolled by his party from its election ticket.

Mr Wong has ties to Chinese billionaire Huang Xiangmo — a past political donor to both major parties. It was reported on Monday that ICAC was asking people about Mr Huang.

Ernest Wong, who has ties to a Chinese billionaire, could not be reached for comment.

“If ICAC finds out (Mr Huang’s) done the wrong thing I don’t want him to come anywhere near the Labor Party,” Mr Daley said.

Mr Huang’s spokesman declined to comment. ICAC declined to comment. Mr Wong could not be reached for comment.

Special Minister for State Anthony Roberts said the Liberals fear Labor will simply use donations from unions to fill the $100,000 gap in their coffers.

Unions NSW secretary Mark Morey denied unions would bail out Labor with extra donations.