Labor is refusing to return a $25,000 donation from a mining industry honcho who was found to be corrupt by the NSW Independent Commission Against Corruption.
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Donations data released by the Australian Electoral Commission this week shows Craig Ransley donated the money to the Queensland branch of the ALP.
It was Mr Ransley who paid the $1800 bill for the now-infamous celebration dinner with corrupt former NSW Labor minister Ian "Sir Lunchalot" Macdonald at plush Sydney harbourfront restaurant Catalina.
The 2008 dinner, which included suckling pig and a $300 bottle of pinot noir, was a "signing ceremony" after Mr Macdonald issued a coal exploration licence to Doyles Creek Mining, owned by the minister's mate John Maitland, Mr Ransley and another businessman.
Mr Ransley, who made an estimated $15 million from the deal, was found by ICAC to have set out to ensure no tender process for the mine licence took place and made false statements to the government to obtain the exploration approval.
ICAC recommended the Director of Public Prosecutions consider criminal charges against Mr Ransley, who recently returned to the helm of Queensland miner Guildford Coal as its chairman.
Despite the corruption finding against him, Queensland Labor told Fairfax Media on Thursday that Mr Ransley's donation had passed "strict guidelines" on donors and donations.
The Queensland Liberal National Party has called on Labor to return the money.
On Thursday, Queensland Labor, under the potential new premier Annastacia Palaszczuk, agreed to hold an inquiry into political donations as part of a deal to secure the backing of independent Peter Wellington to form government.
ALP state secretary Evan Moorhead told Fairfax Media in a statement: "The ALP has disclosed all donations over $1000. All donations to the Queensland ALP meet strict guidelines and go beyond legislation relating to political donations."
It is understood that state Labor figure believe that because Mr Ransley's $25,000 donation was made before ICAC made corrupt findings against him it has been deemed clean.
But Mr Ransley's name had already been raised in relation to ICAC investigations by March of 2013. His donation was included in Labor's return for the 2013/14 financial year, released Monday by the AEC.
An LNP spokesman said: "After trying to claim the high ground on political donations Labor should immediately return the donation just as the LNP did with the donation it received from Australian Water Holdings."
In May last year the LNP repaid $10,300 to the disgraced Australian Water Holdings, which was the subject of a separate ICAC hearing.
Guildford Coal did not return calls after Fairfax Media left messages for Mr Ransley.
