A sensational corruption inquiry has concluded by claiming a 10th NSW Liberal scalp, with Port Stephens MP Craig Baumann sent to the crossbench amid allegations he took secret developer donations.
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This brings to 12 the number of state and federal Liberal politicians who have resigned or stood aside following corruption inquiries this year.
One, Senator Arthur Sinodinos, told the Independent Commission Against Corruption on Friday he did not accept "any responsibility" for the NSW Liberal Party accepting donations from prohibited donors during the past state election campaign.
Operation Spicer, which concluded nine weeks of public hearings on Friday, investigated allegations that the NSW Liberals accepted money from banned sources before the 2011 state election.
Senator Sinodinos was then the chairman of the party's finance committee. He gave evidence he was unaware that property developers, who have been prohibited from making political donations in NSW since January 2010, were donating to the campaign.
"Property developers as defined by whom?" he asked.
"What's your problem? Don't you know what a property developer is?" counsel assisting the inquiry, Geoffrey Watson, SC, said.
The biggest donor, a shadowy Canberra-based organisation called the Free Enterprise Foundation, allegedly "washed" almost $700,000 in illicit donations and channelled the money back into NSW Liberal Party coffers.
"What about this for a pub test: the chairman of the finance committee of the Liberal Party didn't know the identity of the single largest donor to the Liberal Party in an election campaign. What do you think about that?" Mr Watson said.
Senator Sinodinos said it was the responsibility of the party agent, finance director Simon McInnes.
"So you wipe your hands, do you?" Mr Watson said.
"No," Senator Sinodinos said.
He also said that if he was present when the party's former chief fund-raiser, Paul Nicolaou, suggested they use FEF to wash funds "it went over my head".
Mr Baumann joined the crossbench after the inquiry heard he took $79,684 in secret donations from developers Jeff McCloy and Hilton Grugeon before the 2007 election.
Mr Baumann, the former mayor of Port Stephens, admitted he hid the donations by means including a "sham" invoice.
"And it was done for a crooked purpose, you were trying to hide the identity of the donors, correct?" Mr Watson said.
"Um, yes," Mr Baumann replied.
Although this occurred before the 2010 developer donations ban, he agreed the reason for hiding their identity was that both developers could have profited from a proposed development at Wallalong, near Maitland.
But he said: "I don't see how a recipient of a donation can be corrupted."
Mr McCloy and Mr Grugeon denied they were trying to "buy" Mr Baumann's influence and the MP denied making any favourable decisions.
Mr Baumann's accountant, Vince Heufel, admitted he donated $100,000 he owed Mr Baumann's company to his client's campaign. This reduced the company's tax bill.
"I knew that tax evasion was a criminal offence but ... I wasn't thinking along those lines at that time. I certainly now realise that and I'm deeply ashamed," Mr Heufel said.
The ICAC is expected to release a report on Operation Spicer early next year.
