Row over prohibited donors erupts in Liberals' Newcastle branch

The Newcastle Herald has received allegations and counter-allegations about prohibited donors being present at a $40-a-head Liberal event at the exclusive Newcastle Club last week.

The allegations revolve around Newcastle branch president Suzanne Evans, who is a prohibited donor under the NSW Electoral Act because she and her husband, Peter, own a winery.

Ms Evans authorised the invitations to the June 9 "meeting", which included an entry price covering food and drinks and a dress code of "smart contemporary".

She is also listed as the contact for RSVPs.

"The Newcastle Branch of the State Liberal Party invites you to attend a meeting with our NSW State Director Chris Stone," the invitation reads.

"Chris' visit will give us an opportunity to discuss the forthcoming local Government Elections and help in our planning for the Federal Election."

The invitations include the words "not a fundraiser" twice but also contain a section asking those who cannot attend to make a "donation".

It says cheques can be made out to "Liberal Party of Australia - Newcastle Branch".

The wording on the invitation raises questions about whether the Act might have been contravened.

The Act says prohibited donors must not make donations to attend a "fundraiser or function" or solicit donations.

Senior Liberal sources said Ms Evans appeared to have been sabotaged by other party members who had helped to prepare the invitations and were involved in a power struggle in the branch.

The sources said Ms Evans and her husband, who is also a prohibited donor but not a party member, did not pay to attend the event and therefore did not make illegal donations.

They say no prohibited donations were made or accepted.

Mr Evans told the Newcastle Herald that he had not paid to attend the event.

A party spokesperson said: "A Liberal party branch meeting invitation was sent to current and prospective members which met all of the relevant obligations under NSW electoral funding and disclosure laws."

The controversy coincides with the Liberals working through their pre-selection process for the local government elections in September.

The NSW Electoral Commission would not comment on the specifics of the case but confirmed that a donation as defined under the Act could include "an amount paid to participate in a fundraising venture or function".

It would not comment on whether the Liberal event was a "function" under the Act nor whether the invitations might have been in contravention of the Act by soliciting donations.

Ms Evans was contacted for comment.

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