Newcastle mayor and property developer Jeff McCloy has admitted to the Independent Commission Against Corruption that his family company made a potentially illegal donation of almost $10,000 to Liberal MP Tim Owen’s campaign before the last state election.
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In documents filed in the High Court, Councillor McCloy says the McCloy Group ‘‘made a gift in the amount of $9975’’ to the Liberal Party’s 2011 campaign for the seat of Newcastle.
The donation was made on March 21, five days before the poll which saw Labor’s Jodi McKay narrowly defeated by Mr Owen.
Property developers have been banned from making political donations in NSW since 2009.
Cr McCloy, who is challenging the laws imposing the ban in the High Court, says he intends to ‘‘make political donations ... in connection with future NSW state elections, to the extent permitted by law.’’
The independent mayor was named on Monday as part of ICAC’s inquiry into Liberal Party fundraising, which resumes public hearings on Wednesday.
He says in the documents that he attended a secret examination with the watchdog on June 25.
ICAC is examining whether he ‘‘improperly sought to influence certain members of Parliament’’ by making donations during the last state election campaign.
The commission must be satisfied that the conduct of a person other than an MP or public official could constitute a criminal offence before it makes a corruption finding.
It is a criminal offence to make a donation in breach of the ban if the donor was aware at the time ‘‘of the facts that result in the act being unlawful’’.
But Cr McCloy claims in the documents that he ‘‘does not recall the making of the gift, the purpose of the gift or the persons for whose benefit it was made’’.
He says he only became aware later that the ‘‘recipient of the gift was Luke Grant ... a member of staff of the election campaign of Mr Tim Owen.’’ Cr McCloy admits he is a property developer and is a director of property development company North Lakes, but does not admit McCloy Group is a developer.
The company could be regarded as a close associate of Cr McCloy, which would also be subject to the ban.
Cr McCloy’s High Court challenge to the bans extends beyond donations by property developers to donations by the liquor, gaming and tobacco industries.
He is seeking a declaration the laws are invalid and that accordingly the donation by McCloy Group was ‘‘incapable of amounting to corrupt conduct’’.
NSW Greens MP John Kaye said: ‘‘Jeff McCloy has dropped any pretence of this being a public interest matter.
‘‘In his rush to get ICAC off his back, Cr McCloy is not only trying to bring down the ban on developer donations,’’ Dr Kaye said. ‘‘He is also trying to re-open the political process to cash and influence from the alcohol, tobacco and gambling industries.’’
A $10,000 donation to Mr Owen would have breached the caps on political donations then in place in NSW, which restricted donations to individuals to $2000 and $5000 for parties.
