Parties tell banned Chinese developer they are keeping his cash

The Liberal and Labor parties will not return more than $2m in donations made by a now banned Chinese developer.

Huang Xiangmo with Gladys Berejiklian in 2017.

The Liberal and Labor parties have confirmed they will not ­accede to a request from Chinese property developer Huang Xiangmo to hand back more than $2 million in political donations on the basis the money might be “deemed inappropriate” after the Australian government cancelled his permanent residency visa.

With elections looming in NSW and federally, both parties are keen not to elaborate publicly about suggestions they should ­return large sums that could ­seriously drain their finances.

The Chinese national denies he has alleged links to the Chinese Communist Party in Beijing, which are believed to have prompted the cancellation of his residency visa and a refusal to grant him Australian citizenship.

Former Foreign Minister Professor Bob Carr and Xiangmo Huang in 2016.

The decision has effectively stranded Mr Huang in Hong Kong, preventing him from returning to his mansion on Sydney’s northside, an outcome he calls “grotesquely unfair”.

While appealing against the government’s decision, Mr Huang issued a public appeal to the major parties last week to hand back the large donations made by him and his Sydney-based company, Yuhu Group Australia. He urged political parties to return funds if they were “deemed inappropriate” and said he would give the money to Australian charitable organisations.

A Liberal spokesman confirmed no funds would be handed back and said the Morrison government had taken action to protect the “integrity of Australia’s electoral system” by legislating a ban from January 1 to stop foreign political donations from individuals or those with international corporate interests.

A spokesman for Labor said all donations from Mr Huang were appropriate. Funds not meant for NSW election funding were separated for federal elections.