The NSW Liberal party has been slammed by election funding authorities for "concealing" the identities of illegal major donors before the 2011 election that brought it to power, including via the secretive Free Enterprise Foundation.

In an extraordinary finding, the NSW electoral commission has concluded that, based on evidence given to the Independent Commission Against Corruption in 2014, the foundation was used by senior Liberal party officials to "channel and disguise donations by major political donors some of whom were prohibited donors".

The commission says it has relied on evidence given to the ICAC by senior party officials including about the "involvement" of current cabinet secretary Arthur Sinodinos, who was finance director and treasurer of the NSW Liberals at the time.

In a statement released late on Wednesday, commission chairman and former NSW court of appeal president Keith Mason, QC, says the NSW Liberals have repeatedly failed to hand over details of donors to the foundation, which in turn helped bankroll the party's election victory five years ago.

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The donations in question total $693,000.

As a consequence the commission is refusing to hand over $4.4million in public funding the NSW Liberals have claimed from last year's state election – a decision the party says puts "pressure" on its financial situation given the looming federal election. In a potentially enormous financial blow, the commission says it will not pay likely millions of dollars in future administrative funding to the party until the donors are disclosed.

It finds by not disclosing details of the donors, the Liberal Party has breached NSW electoral law.

"Integrity and public confidence in the electoral system are vital," Mr Mason said.

"The election funding and disclosure scheme promotes campaign finance transparency.

"This party declaration concealed rather than disclosed the statutory information. Parties seeking public funding must play by the rules".

A party spokeswoman said it was currently reviewing the finding.

Read more: http://www.smh.com.au/nsw/nsw-liberals-concealed-illegal-donors-before-2011-election-win-20160323-gnpsn6.html#ixzz43ixvgBNp
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