Controversial Liberal MP Glenn Brookes has admitted spending more than $130,000 from his personal bank account to fund his re-election campaign, raising questions about whether he breached election funding laws.
The battle between Mr Brookes and Labor candidate Cameron Murphy in the seat of East Hills was one of the most bitterly fought of the 2015 election.
It was marred by a smear campaign which saw Mr Murphy's election posters defaced with the word "paedophile lover" in apparent reference to his former role with the NSW Council for Civil Liberties. Mr Brookes denies involvement in the smear campaign.
Election funding laws state that a candidate may fund their own campaign, but the payments must be processed through an official campaign account operated by a separate "official agent" if more than $1000 is spent.
It is "unlawful" for an elected MP to make payments towards their re-election unless they are from the campaign account.
The most recent election funding statement by the NSW Liberals to the state electoral commission declares Mr Brookes paid for more than $130,000 worth of advertising, posters, balloons, water bottles and T-shirts.
The amount included $50,000 in cash and $83,000 "in-kind" donations to the campaign by Mr Brookes.
Mr Brookes told Fairfax Media he paid for the material from his personal bank account.
"I just did it out of my own bank account," he said. "The way it was explained to me is, if I'm self-funded all I have to do is write down everything I spent."
Mr Brookes said "that's how it was explained to me by head office".
The funding and expenditure statement to the electoral commission was signed off by NSW Liberal Party finance director Simon McInnes acting as the official agent for Mr Brookes.
A spokeswoman for the NSW Liberal Party said: "All campaign finances were put through a central campaign account under the control of the Party Agent [Mr McInnes], with separate accounting for every candidate.
"All campaign income and expenditure was recorded and declared in accordance with the legislation," she said.
"The candidate contributed significantly through in-kind self-funding contributions and cash self-funding contributions."
Asked how Mr Brookes' in-kind donations were processed through the campaign account, the spokeswoman said they were "recorded in the NSW Liberal Party's bespoke online banking and expenditure reporting system".
"These contributions are recorded like a general journal in an accounting system and a receipt, in accordance with Election Funding, Expenditure and Disclosures Act 1981, has been issued to Glenn Brookes," she said.
The matter has been referred to the electoral commission by Labor MLC Lynda Voltz, who claims there is evidence of significant breaches of the law.
NSW Electoral Commissioner Colin Barry has written to Ms Voltz saying he will conduct a "preliminary review and assessment".
