Key Points
- Two One Nation MPs have quit the party and accused officials of wrongly funnelling state funds into federal hands.
- One Nation leader Pauline Hanson rejected the allegations, saying the party's finances go through regular audits.
- The allegations will be reviewed by the Electoral Commission.
Allegations One Nation leader Pauline Hanson's office improperly funnelled money into its federal coffers will be reviewed by the Electoral Commission.
Rod Roberts and Mark Latham, two of One Nation's three MPs in the NSW Parliament quit on Tuesday, after claiming under parliamentary privilege officials had misappropriated funds. They will now sit as independent MPs in the state's upper house.
In a letter to NSW Special Minister of State John Graham tabled in state parliament, Latham alleged more than $270,000 had been moved out of the state party and federal executive in recent years for merchandise and equipment.
In one instance, $102,000 in taxpayer funds paid to NSW One Nation after the 2019 election was allegedly redirected to the party's Brisbane office and used to buy warehouse equipment and merchandise, he alleged under parliamentary privilege.
"Can I say this whole sordid saga is not about election results but a pure grab for money in something that I will not be part of," Mr Roberts said under parliamentary privilege.
Senator Pauline Hanson has rejected the allegations
Senator Hanson rejected the allegations, saying the party's finances in NSW and nationally were subjected to regular audits by chartered accountants and state and federal electoral commissions.
Her chief of staff James Ashby questioned why the allegations had not been raised earlier with the party, the Electoral Commission or the NSW corruption watchdog. He later welcomed an investigation by the commission.
"To walk away like this and to spit in our faces and just completely lie, I hope that the Electoral Commission in NSW does investigate this," Mr Ashby told Sky News on Tuesday night.
"We gave Mark Latham a lifeline to be an elected representative of the NSW parliament and he has spat in Pauline Hanson's and my face."
Ashby added he was considering defamation action and will meet with his lawyers on Wednesday.
"We will be looking quite seriously at defamation and I have no problems in taking Mark Latham on in this pursuit of trying to take me down," he said.
Latham's claims have been referred to the NSW Electoral Commission
Graham said Latham had raised allegations of loopholes in the Electoral Funding Act, which may allow for the misuse of public funds.
"These are serious allegations, and the government has referred them to the NSW Electoral Commission," the minister said in a statement on Tuesday.
Graham said it should be noted that the Electoral Funding Act already provides a strong framework for regulating the use of public funds.
"In relation to the Elections Campaign Fund, a party can only receive payments in relation to actual campaign expenditure of the party and this does not include expenditure for elections outside NSW, or federal elections," he said.
The NSW Parliament will sit again on Wednesday.
