'Misinterpreted': Association stops political donations as ICAC scrutinises fundraising

A prominent Chinese-Australian organisation will stop all political donations after one of its most senior former officials was called to give a statement to a corruption inquiry into fundraising for NSW Labor.

The Australia China Trade, Economic and Cultural Association's (ACETCA) decision takes place against the backdrop of the Independent Commission Against Corruption's ongoing probe into potential breaches of NSW donation laws at a 2015 Chinese Friends of Labor dinner.

The inquiry began in part because of "its context in connection with possible foreign interference in the NSW electoral process," according to documents released by the corruption watchdog's inspector, Bruce McClintock SC.

The 2016 ACETCA annual gala dinner, attended by several Labor and Liberal MPs.

Former federal Labor leader Bill Shorten and state labor leader Luke Foley were at the 2015 dinner, alongside controversial property developer Huang Xiangmo.

The Herald revealed last month that ACETCA has donated close to $40,000 to state political parties since 2013, with most of the cash ($29,000) given to the Liberal Party through events attended by premiers, treasurers and MPs

ACETCA executive chairman Dr Ven Tan said the association was apolitical and had donated to political parties along with other charitable organisations.

"Unfortunately, our activities have been misinterpreted in a way that has damaged our reputation," Dr Tan said. He has previously labelled any suggestion that ACETCA is linked to the Chinese Communist Party as "absurd".

"While we can’t tell our members what to do, we can make a recommendation that they don’t donate to political parties until they are certain that the way they do so is legal and can be seen to be above board," Dr Tan said.

He said ACETCA supported democracy and the rule of law. "Our founders have made Australia home and we are committed to what it means to be Australian," he said.

"I would ask that people heed what Duncan Lewis, the outgoing director general of ASIO, said last week, that ‘You can very quickly get to the point where you can vilify the many for the actions of the few.’"

Former ACETCA executive chairman Dr Amen Lee gave a statement to ICAC in August in which he discussed the 2015 dinner and his connection to former NSW Labor MP Ernest Wong.

Dr Lee said he knew Mr Wong, who was listed on ACETCA's now-defunct website as an "honorary adviser" to the association in 2017, but was not friends with him.

Mr Wong was accused in an ICAC hearing last month of organising for Mr Huang, a banned donor who has since been prevented from returning to Australia, to buy the head table of the 2015 dinner for $100,000. Mr Huang and Mr Wong deny those allegations.

An email tendered to the ICAC lists the "Australian-China economic trade & culture Association" among the community groups on the planned dinner guest list.

Dr  Lee, who was ACETCA's executive chairman in 2015 but stepped down to become honorary chairman in 2017, told ICAC this year he could not remember attending.

"I do not independently recall attending an event for Ernest Wong at the Eight Restaurant during 2015," Dr Lee said, although he acknowledged a note in his calendar on 12 March 2015, the day when the dinner was held, reading: "ernest wong FUND RAISING din..." [sic].

"If I do attend these events they are paid for by Top Education or ACETCA. I have not and would not attend as an individual," Dr Lee said. Top Education is a company of which Dr Lee said he was a director and shareholder.

The company's boss Dr Minshen Zhu, Dr Lee's business partner, agreed to pay former senator Sam Dastyari's travel bill of $1670 in 2016 through Top Education after Mr Dastyari overspent his allowance.

Revelations of the transaction triggered Mr Dastyari's first resignation from the shadow cabinet.

There is no suggestion Dr Lee, Top Education or ACETCA has been involved in making any illegitimate or illegal political donations.