Keneally stands by accused MP

 

At the time Ms Hay, one of NSW Labor’s biggest fund-raisers, blamed the mistake on an official from head office.

Yesterday she maintained she had done nothing wrong, saying the matter had been dealt with in 2008 and that any anomalies in returns were nothing more than a ”clerical error”.

The ALP said it was stunned that the matter had resurfaced and believed there would be no formal investigation.

”The election funding authority received and accepted an amended return in 2008. There has been no correspondence between the Australian Labor Party and ICAC over this matter,” an ALP spokesman said.

An ICAC spokeswoman would not confirm yesterday whether it was investigating allegations against Ms Hay. Less than 5 per cent of all matters referred to the ICAC are brought to the stage of public investigation.

Having received the backing of Ms Keneally, Ms Paluzzano was exposed by the ICAC last month for having allegedly rorted parliamentary expenses to assist her re-election campaign.

Her resignation led to the recent Penrith byelection hammering for Labor, which not only exposed the extent of voter antipathy towards the state government but is also believed to have been one of the triggers for the ousting of former prime minister Kevin Rudd in favour of Julia Gillard.

Before the 2007 election Ms Hay raised $230,000 for the ALP from 170 donors.

Unfortunately for a string of premiers, she has also never been far from scandal.

Ms Hay has consistently denied she took part in the infamous sex dance with parliamentary colleague Matt Brown on his desk during an office party. Despite denials from Mr Brown and Ms Hay that the incident ever took place, former premier Nathan Rees dumped her as parliamentary secretary for health last year.