ONE of the key fundraisers for the NSW Liberal Party has resigned and a senior Liberal MP has stood down on the first day of the state's latest corruption inquiry.
Paul Nicolaou resigned as chairman of the Millennium Foundation on Monday after being named at ICAC's Operation Spicer inquiry, which is examining allegedly corrupt payments between property developers and NSW politicians.
Developers have been banned from donating to NSW political parties since 2009.
The Millennium Foundation is the NSW Liberal's fundraising division and the ICAC heard on Monday that Mr Nicolaou was aware of prohibited donors giving money to the party via another Liberal entity, the Free Enterprise Foundation.
Liberal MP Marie Ficarra voluntarily stood down on Monday after allegations at ICAC that she took a banned $5000 donation from property developer Tony Merhi.
Liberal MPs Darren Webber, Chris Spence and former minister Chris Hartcher were suspended from the party earlier this year when some of the allegations contained within Operation Spicer were made public.
"I am shocked and appalled at the allegations raised in today's opening statement at ICAC," NSW Premier Mike Baird said in a statement.
"As I said at the announcement of this inquiry, if any wrongdoing is found, the book should, and will, be thrown at the perpetrators."
Mr Baird said he had ordered Liberal Party state director Tony Nutt to investigate the ICAC allegations.
Mr Nutt was only appointed Liberal Party state director on Monday.
"Following my appointment this afternoon I've sought urgent and detailed information regarding certain matters that arose today at the ICAC," he said in a statement.
"It is important that the NSW Liberal Party comply with the law and acts with integrity in the conduct of its affairs."
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