Mr NATHAN HAGARTY (Leppington) (20:09): I address the troubling developments concerning political donations, governance and integrity at Liverpool City Council. Evidence presented under oath to the public inquiry into Liverpool City Council in August revealed that the mayor personally facilitated a donation from a property developer to support the campaign of then independent candidate and now CEO Jason Breton. On 9 September The Sydney Morning Herald revealed additional developer-linked donations to Mr Breton, including one from the mayor's own brother. Then, on 26 September, the Herald reported that family members of two Liberal councillors, Matthew Harte and former Deputy Mayor Fiona Macnaught, are now among the Liberal Party's largest donors in New South Wales. The former deputy mayor's children, both of whom are young adults, are reported to have donated at levels placing them in the top tier of political contributors in the State.

These contributions, together with evidence of prohibited developer donations, raise serious questions about the transparency and legitimacy of these funds, questions that demand the attention of the NSW Electoral Commission, the Independent Commission Against Corruption and this very Parliament. It is incumbent upon integrity agencies to follow the money, trace the source of these donations and determine whether they are legitimate and lawful or being used to disguise the influence of prohibited donors. Straw donations are not only improper; they are unlawful.

If these funds are found to not be genuine, then multiple local government elections in Liverpool were not fought on a fair playing field. Every candidate who contested those elections and every resident who casted a vote has reason to be seriously concerned. Furthermore, serious questions must be asked of the State Liberal Party. Surely, party officials saw these donations coming in and their unusual nature. Did they ask where the money was coming from? Did they ask whether it complied with the law? Or did they simply accept the cash and look the other way? And, in light of these most recent reports, has the State director taken any further action?

While inquiries and investigations are ongoing, a black cloud hangs over the elected and administrative leaders of the City of Liverpool. That cloud cannot be waved away by pathetic excuses that those involved were novices. It must be addressed directly and without delay. Under section 232 of the Local Government Act 1993, councillors have a legal duty to act honestly, exercise care and prioritise the public interest. The Model Code of Conduct for Local Councils reinforces this, requiring councillors to ensure that their councils act lawfully, ethically and transparently. That duty includes responding to serious integrity concerns and, if necessary, standing the CEO aside during those investigations. Let me very clear: This is not a presumption of guilt. It is a basic standard of governance.

Yet at Liverpool City Council we have seen the opposite. Councillors seeking an extraordinary meeting to debate these matters have faced walkouts, the withdrawal of quorum and legal threats to shut down discussion. The mayor has resorted to lawfare to delay and block a lawful request for an extraordinary meeting and to shut down a basic democratic debate about whether the CEO should be stood aside. That conduct is unacceptable. It undermines the council's legitimacy and mocks this Parliament's demands of local governments. Councils are not private boards; they are public institutions, funded by and accountable to the ratepayers and the community. The way forward is clear. The Electoral Commission must audit these donations and trace their true origin. ICAC must investigate any links between donors, developers and the council's decisions. Given the years-long trail of scandals that have plagued Liverpool City Council and its refusal to act on these latest revelations, this Parliament must now act.

In light of the precedent set by parliamentary inquiries into the council of the City of Canterbury Bankstown and the Hills Shire Council in the last term, it is now incumbent on this Parliament to launch its own inquiry into the serious allegations plaguing Liverpool City Council. This is not an abstract debate; it goes to the core of our democracy. The people of Liverpool deserve confidence that their local government operates with honesty, independence and transparency. The pattern of donations, the evidence before the inquiry and the conduct of key figures raise far too many unanswered questions. Those questions must now be answered, without fear or favour.

Ms CHARISHMA KALIYANDA (Liverpool) (20:14): I respond to highlight the serious and concerning issues raised by the member for Leppington in his statement. We share the Liverpool local government area, and I know that many of my constituents and many of the residents of the Liverpool local government area have expressed deep dissatisfaction and disappointment with the shenanigans—if I may frame it that way—that are being reported widely in the media about what has taken place in the council, where residents' concerns are being deprioritised for politicking and lawfare. In this term of government, this Government has made a concerted effort to restore faith in democracy and in government institutions by prioritising accountability. I call on the Opposition to support any actions and any measures taken in this respect as well.