Castle Hill MP Ray Williams has denied claims that he accepted thousands of dollars in illegal political donations from property developers before the 2015 state election.
Premier Gladys Berejiklian has asked the NSW Liberal party to investigate the allegations, after the Daily Telegraph reported that Mr Williams received donations of $990 from property developers, which is below the $1000 declaration threshold.
Property developers have been prohibited from donating to NSW state election campaigns since 2010.
Mr Williams released a statement on Wednesday morning, claiming that he has not breached rules in relation to political donations.
“Allegations made today regarding myself are completely false and I refute them entirely,” Mr WIlliams said.
“I state for the record, I have never received an illegal donation.
“All donations made on behalf of a conference I have represented have been made directly to the Liberal Party of Australia, NSW Division as is required by law.
“It is the responsibility of the Liberal Party, NSW Division to ensure all donations comply with the Expenditure and Disclosures Act.
“I welcome an immediate investigation into these allegations.
“I look forward to my good name being cleared at which time I will consider my options regarding any further action I may take regarding the journalist and the Daily Telegraph.”
Mr Williams has been the Mutlicultural Affairs and Disability Services Minister for less than a month.
In a statement on Wednesday, Ms Berejiklian said political donations were managed by the NSW Liberal party.
"I have asked the party to investigate these claims. If any allegations of wrongdoing emerge, they will be referred to the NSW Electoral Commission," she said.
"The NSW Government takes the issue of political donations very seriously and has taken a number of steps in recent years to improve transparency and accountability."
Fairfax Media understands the allegations were initially raised by Liberal opponents of Mr Williams in a bid to prevent him being given a ministry prior to Ms Berejiklian announcing her cabinet reshuffle last month.
It has been alleged that Mr Williams, who is aligned with the centre right faction, was appointed to cabinet over left-winger John Sidoti in a factional deal linked to preselection for the North Sydney byelection.
Last year the NSW Liberal party was forced to forgo almost $600,000 in public funding after political donations equal to that amount were deemed by the electoral commission to have been unlawful following an investigation into its fundraising before the 2011 election.
Mr Williams was not involved in that investigation.