Disgraced MP's staffer 'certainly' involved in corrupt donations

Disgraced NSW MP Tim Owen's former campaign manager was "certainly involved" in subverting electoral donation laws for the Liberal Party, an inquiry has heard.

Hugh Thomson was allegedly part of a group who concocted a scheme to have campaign service providers invoice third parties - who were prohibited from making political donations - to work around laws preventing people like property developers offering cash.

At the Independent Commission Against Corruption (ICAC) today, Mr Thomson denied proposing a sham sale of a candidate's house where the transaction would never occur but the candidate "would end up enriched by the deposit."

"That was you trying to think up ways of getting around legislation in order to ensure that Mr Owen could capitalise on the enthusiasm of the business community support," former NSW police minister Mike Gallacher's lawyer Arthur Moses said.

"No," Mr Thomson replied.

But there were other schemes the Liberals were working on.

"If, for example, a media company did work for the campaign that invoice could be sent through a prohibited donor," ICAC Commissioner Megan Latham said.

"I was certainly involved in it," Mr Thomson, a member of the Hillsong Church said, adding that there were other Liberal ploys like the "sale of artwork for inflated prices".

The ICAC also heard Mr Thomson stashed $20,000, given to him in $10,000 instalments by property developer and now Newcastle mayor Jeff McCloy and another property developer Hilton Grugeon, in a cupboard at his home.

The inquiry continues.