Donor was told 'no one will know': ICAC

Written By Unknown on Selasa, 29 April 2014 | 11.25

THE NSW builder whose $5000 payment to an alleged Liberal Party front company sparked a sensational inquiry says a fundraiser for NSW MP Chris Hartcher urged him not to declare the donation.

Matthew Lusted told the corruption watchdog he decided to stand for Liberal preselection in the federal seat of Dobell after a chance meeting with then Opposition Leader Tony Abbott at a steakhouse on the eve of Australia Day, 2011.

"He encouraged me to consider it," Mr Lusted told the Independent Commission Against Corruption (ICAC) on Tuesday.

"And eventually I did."

Mr Lusted was ultimately beaten to the Dobell preselection by Karen McNamara, who he claims "gloated" that as campaign manager for Darren Webber's 2011 state parliament tilt at the seat of Wyong, she raised $200,000, though she declared less than $100,000.

Days earlier, Mr Lusted says, he had met with Hartcher associate Ray Carter, who asked him to "contribute for the boys who are standing on the coast".

The "boys" were Mr Hartcher and NSW Central Coast MPs Chris Spence and Mr Webber, all of whom have been banished to the crossbench over the controversial donations.

It is alleged that Mr Carter arranged for the money to be paid not to the Liberal Party but to "sham" company EightByFive.

Documents show Hartcher staffer and EightByFive founder Tim Koelma billed Mr Lusted's company for $4545.46 plus GST for "Products and services as agreed".

Mr Lusted said he did not realise the money had been funnelled in this way until he attempted to declare the $5000 donation to the Electoral Funding Authority and one of his staff was unable to find a record of it.

"I had a gut feeling something was not right," Mr Lusted told the ICAC in a statement.

But he says Mr Carter reassured him that the apparent discrepancy would go away, telling him: "No one's going to find out about anything. You've got nothing to worry about."

"I wonder if he thinks that now," Mr Lusted mused.

Counsel for Mr Koelma has suggested Mr Lusted is lying to the ICAC "as a form of retribution for having not been preselected" in Dobell.

The inquiry into political donations continues.


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