Mr Hartigan has confirmed that in late 2009, controversial businessman Greg Jones organised a meeting with him and Mr Torbay, then speaker of the Legislative Assembly.

The meeting took place over a drink at the East Sydney hotel to ask what News Ltd’s influential chief executive thought of the plan to make Mr Torbay the independent premier.

Mr Torbay said he would want the Liberals’ Mike Baird and Gladys Berejiklian parachuted into his cabinet –although they knew nothing about his plan.

Mr Hartigan was incredulous. “This was Eddie Obeid’s plan,’’ he said. “The way I read it, Eddie Obeid was willing to blow up the [Labor] party in order to retain power through Mr Torbay.’’

After the Torbay meeting, Mr Jones asked the News Ltd chief to meet Mr Obeid, a request Mr Hartigan refused.

Three weeks ago Mr Torbay dramatically resigned from state parliament and as chancellor of the University of New England after allegations concerning him were referred to the Independent Commission Against Corruption (ICAC).

 Channel Seven has reported that those allegations concern Mr Torbay receiving up to $50,000 cash from Mr Obeid and his son Moses. The money was understood to have been handed over at a Birkenhead Point cafe, before the state election in 2011.

Seven’s state political reporter, Lee Jeloscek, had been unable to substantiate the story but last week he unexpectedly ran into Mr Torbay in Martin Place. ‘“He confirmed that this was the nature of ICAC’s investigation,’’ Jeloscek said.

Mr Obeid has denied providing any money to Mr Torbay and told News Ltd papers if anyone was suggesting this he would be “suing the hell out of them’’. Moses Obeid also denied the allegation.  Officers from the corruption commission raided Mr Torbay’s Armidale home and electoral office within a week of Mr Torbay’s sudden resignation.

It was Mr Torbay who informed senior National Party officials of the allegations, which they then reported to ICAC. Mr Torbay also quit as The Nationals’ candidate to challenge independent Tony Windsor at the next federal election.

Mr Torbay’s unsuccessful meeting with Mr Hartigan is understood to have taken place after then premier Nathan Rees dumped Mr Obeid’s close ally, the now disgraced mining minister Ian Macdonald.

During the recent ICAC investigation, evidence was given suggesting that Mr Macdonald was to be paid $4 million from Mr Jones’ share of a potential $60 million profit from an allegedly rigged coal tender which Mr Macdonald oversaw. And notes tendered during the inquiry indicated that Mr Jones, a former Labor staff member and lifelong friend of Mr Macdonald, had previously channelled thousands of dollars in secret payments to his old mate.