Labor tells members to keep the faith as ICAC approaches

As the NSW Labor Party faces an inquiry into electoral funding, its president has a positive message for its members.

NSW Labor general secretary Kaila Murnain will be a key witness in the ICAC hearings. Picture: Adam Taylor

The NSW Labor Party has tried to reassure its members it remains committed to transparency and accountability, on the eve of a corruption inquiry into the party’s alleged scheme to circumvent NSW electoral funding laws with Chinese donations.

In a letter issued last night to its 17,000 members, NSW Labor president Mark Lennon said governance improvements over the past few years had made the party a “more accountable, more transparent and a more responsible corporate citizen”.

The state’s corruption watchdog will be investigating whether, from January 2015, Labor officials sought to evade NSW political donation laws by entering into a scheme with Chinese Friends of Labor, which can result in a jail term of up to 10 years.

“While these are historic matters, we take them very seriously,” Mr Lennon said.

“We will do everything we can to co-operate and assist the investigating body with these matters. If it is found that anyone has breached any legislation, the party will act on these findings.”

Mr Lennon also claimed that in 2019, Labor had a “more transparent donation disclosure system than any other political party in Australia”.

“Still, we recognise there is always room for improvement,” his letter read.

“We will continue to make governance changes to ensure we meet and exceed the expectations of the Australian public.”

The hearings before the NSW Independent Commission Against Corruption will begin this morning with testimony from Kenrick Cheah, NSW Labor’s community relations director.

Other key witnesses before the ICAC investigation this week include NSW Labor general secretary Kaila Murnain and former NSW state MP Ernest Wong.

The initial focus of the investigation will reportedly be a NSW ALP fundraiser at the Eight Modern Restaurant in Sydney’s Chinatown in March 2015 — two weeks before a state election.

At the time, Ms Murnain was deputy to Jamie Clements, who managed Labor fundraising as NSW party general secretary, the job now held by Ms Murnain. Mr Clements is widely expected to be called as a witness later.

Chief Commissioner Peter Hall QC will preside over the public inquiry, and Scott Robertson will act as Counsel Assisting.

The inquiry is set to run for about six weeks.