ICAC finds former NSW Labor MP Ernest Wong corrupt

The NSW corruption watchdog has found former Labor MP Ernest Wong engaged in serious corrupt conduct as part of a scheme to circumvent the state’s donation laws with cash from a Chinese billionaire’s casino junket account.

The NSW Independent Commission Against Corruption on Monday announced its finding in a 2019 inquiry into the state Labor Party. The inquiry heard extraordinary claims including one of an Aldi bag containing $100,000 in cash being dropped off at the party’s Sussex Street headquarters.

Then federal and state Labor leaders Bill Shorten and Luke Foley attend a fundraiser, along with Mr Huang (second from right) and former Labor MP Ernest Wong (second from left).

The ICAC report says Chinese billionaire Huang Xiangmo was the true source of that $100,000, with the cash having been drawn from his “junket account” at The Star Sydney casino. The report found Mr Huang delivered the cash to the NSW Labor head office in April 2017.

The commission is now considering seeking advice from the NSW Director of Public Prosecutions on whether any prosecution should be commenced against Mr Wong, and more than a dozen other people, including Mr Huang.

“The NSW ICAC has found that former NSW MLC Ernest Wong engaged in serious corrupt conduct by misusing the privileges to which he was entitled as a member of the Legislative Council in relation to a scheme to circumvent electoral funding laws and by attempting to procure a witness to give false testimony,” the ICAC statement said.

The ICAC also said Mr Wong told witnesses to lie to the commission.

The ICAC report said Mr Wong used his parliamentary scanner and email address to plan aspects of a Chinese Friends of Labor dinner, which was used to conceal Mr Huang’s $100,000 donation.

Two weeks after the dinner, an associate of Mr Wong organised for 10 people to falsely declare donations using the forms, which were later used to conceal the true origin of Mr Huang’s donation.

“Mr Wong knew, at the time that he procured donor declaration forms from each of the 12 putative donors, that Mr Huang, whom Mr Wong believed to be a ‘prohibited donor’, was the true source of the $100k cash,” the ICAC report said. It added that the $100,000 donation was “unlawful”.

The 288-page report said Mr Wong and his associate Jonathan Yee each took numerous steps between 2015 and the public inquiry in 2019 to “monitor and influence investigations by the NSW Electoral Commission and the ICAC.

Ernest Wong outside the ICAC in September 2019.Credit: Louise Kennerley

They did this with a “view to concealing the falsity of the donor declarations” made by each of the so-called donors.

The 2019 corruption inquiry investigated a scheme within the NSW Labor Party to allegedly evade the state’s donation laws by using straw donors to disguise a large cash donation from Mr Huang.

Members of the party sought to conceal Mr Huang’s donation by using 12 fake donors from a 2015 Chinese Friends of Labor fundraising dinner, the report said.

The ICAC made a series of recommendations to government regarding amendments to the state’s electoral funding act.

NSW Labor leader Chris Minns said the report was “tough and troubling” for his party, and added it would accept all recommendations contained within it.

“We face a big task ahead of us to – rebuild that trust in the run up to the 2023 NSW state election. We’re determined to do that and we will use this report as a guide to ensure that we make those changes,” Mr Minns said.

Mr Minns said the party office had taken steps to change the operation of the organisation as a result of the inquiry, and he had spoken to the general-secretary on Monday.

“Finally, I want to say that Labor supports the ICAC not because it investigates our political opponents – but because it investigates us. We support the ICAC and accept these recommendations,” he said.

NSW Premier Dominic Perrottet said he would review the recommendations, which would then be considered by cabinet.

“There is no place for corruption in NSW and whatever we can do to stamp it out, we will,” Mr Perrottet said.

“And any of those recommendations to the government provide guidance to us in terms of actions that we can take to ensure the events of the past, here in circumstances of the Labor Party, do not occur again.“

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.