'Are you making this all up?' former Labor MP grilled at ICAC

A former Labor MP has been accused of orchestrating a scheme to circumvent the state’s donation laws involving Chinese billionaire Huang Xiangmo, who allegedly dropped an Aldi bag of cash to NSW Labor’s headquarters.

Former NSW upper house MP Ernest Wong stands accused of using straw donors to disguise a $100,000 donation that Mr Huang, a property developer and banned donor, paid to buy the top table of a 2015 Labor fundraising dinner.

Ernest Wong (centre) arrives at the NSW Independent Commission Against Corruption inquiry.Credit: Louise Kennerley

During a repetitive and sometimes confusing day of questioning, Mr Wong was accused of misleading the Independent Commission Against Corruption on several occasions as his alleged role in the scandal was laid bare.

The ICAC was also shown evidence that Mr Wong had discussed key details of the investigation with another person implicated in the scheme during a trip to China in late 2018.

Mr Wong first denied this but was then shown a photograph appearing to show his phone which contained notes of the alleged meeting with Chinese restaurant owner Jonathan Yee in Guangdong in November last year.

The ICAC investigation centres around a March 12 Chinese Friends of Labor fundraising dinner, where Mr Wong is alleged to have organised for Mr Huang to purchase the head table for access to then-Labor leaders Bill Shorten and Luke Foley.

Labor's 2015 fundraising dinner at the Emperor's Garden Restaurant in Chinatown. Pictured are Ernest Wong, second from left; Bill Shorten, third from left; Huang Xiangmo, second from right; and Luke Foley, far right.

The $100,000 cash from that transaction was then personally delivered to Labor’s headquarters by Mr Huang, the ICAC was sensationally told last week.

Labor's community relations director Kenrick Cheah claimed then-NSW Labor boss Jamie Clements had been handed the cash and then asked him to count it.

A dozen fake donors, including staff, family and friends of restaurant owner Mr Yee, were allegedly used to disguise Mr Huang’s involvement.

Instead, Mr Wong claims the money was raised on the night, and Mr Huang had volunteered to personally deliver it to Labor’s office.

"Here was the alleged billionaire offering to do a delivery run with a bag of cash," ICAC chief commissioner Peter Hall said, before asking Mr Wong if that struck him as unusual.

"Not at all," Mr Wong replied.

"Mr Wong, are you just making this all up as you go along?" counsel assisting the commission Scott Robertson said. He added Mr Wong's evidence seemed "highly implausible".

Mr Wong claimed that on the night of the dinner it was very late, he’d had a few drinks and as an elected MP he didn’t want to take home a large bag of cash.

The inquiry heard that one of the straw donors was Wu International employee Dr Leo Liao, who filled in a form falsely claiming he had donated $5000 in cash. Dr Liao took his own life on June 25, 2018, the day he was due to be examined by the corruption watchdog over the matter.

The other Wu International employee, Steve Tong, has given evidence that he did not donate the money and that his boss had asked him to say he had.

“I suggest to you that what you did was you engaged in a scheme that involved getting people like Dr Liao and Mr Tong to sign disclosure forms even though that you well knew that they didn’t contribute a cent in connection to the Chinese Friends of Labor dinner,” Mr Robertson said.

“No,” Mr Wong replied.

Mr Wong was also shown evidence he had met with Mr Tong at Parliament House last year, who told him he had never personally donated to the Labor Party.

It was alleged that Mr Wong told Mr Tong to “keep his mouth shut,” which he denied.

The former MP conceded that a breach of electoral law was discussed in his parliamentary office during the meeting and he hadn’t alerted authorities.

“Here’s a man in your office in Parliament House telling you that he signed a false declaration, that he’d been manipulated into doing so, that he was not the true donor at all,” ICAC Chief Commissioner Hall said.

“What he was in effect admitting to was an offence concerning the electoral laws to you, a parliamentarian."

Mr Wong said he wasn't sure if what Mr Tong was telling him was true.

The scandal has claimed the job of NSW Labor general secretary Kaila Murnain, who last week admitted to knowing about the suspect donations since September 2016.

Ms Murnain had been informed by Mr Wong at the back of NSW Parliament, the ICAC heard, and on Monday it was revealed that after their meeting Mr Wong then called Mr Huang.

The inquiry continues.