NSW Libs ICAC problems head west

In a worrying sign for the NSW Liberal party, the donations scandal has spread to the key battleground of western Sydney before next year's election.

Like nine NSW government MPs before him, Bart Bassett has become an ICAC victim.

But the member for Londonderry's decision to stand aside from the parliamentary Liberal Party is different.

It marks the first time that damaging allegations at the Independent Commission Against Corruption have spread to western Sydney, which is expected to be hard-fought territory when NSW voters head to the polls next March.

ICAC Commissioner Megan Latham has formally widened the scope of the long-running Operation Spicer to examine whether Nathan Tinkler's Buildev, company co-founder Darren Williams and developer Mark Regent influenced or attempted to influence Mr Bassett to make planning decisions for their benefit.

Counsel assisting Geoffrey Watson SC says investigators have uncovered hard evidence that Buildev channelled $18,000 to Mr Bassett's campaign coffers in the lead-up to his 2011 election to parliament, flouting NSW laws that bar property developers from making political donations.

The ICAC is investigating whether the money was delivered to the former Hawkesbury mayor to thank him for - or encourage him to make - council decisions that could boost Buildev's chances of getting up a controversial housing development at North Richmond.

Mr Watson said that before Buildev withdrew from the development, its bosses believed Mr Bassett could help them secure the project and profits of up to $50 million.

"Do you think a payment could have been made into that election account as a way of thanking Mr Bassett for decisions he'd made to benefit Buildev?" Mr Watson asked Mr Williams on Wednesday.

"You could make that speculation," the witness replied.

"It's not my recollection."

Mr Bassett was not the only politician whose interest the housing project piqued.

The ICAC heard that former Labor heavyweights Mark Arbib, Eric Roozendaal, Tony Kelly and Joe Tripodi were all consulted in relation to the development plans.

When Mr Williams denied Mr Tripodi had anything to gain by assisting Buildev, Mr Watson jokingly asked if, like Mr Bassett, Mr Tripodi could "sniff out the merits of your campaign".

Evidence at the ICAC this year has led to the dethroning of former premier Barry O'Farrell, forced Tim Owen and Andrew Cornwell to quit politics and relegated seven MPs to the cross benches, including ex-police minister Mike Gallacher who relinquish his portfolio.

Mr Bassett has denied any wrongdoing.

"I reject this allegation and I look forward to my opportunity to clear my name," he said.

But the scandal is expected to land a blow to his 2015 re-election aspirations.

Mr Bassett was the first Liberal to sit in Londonderry, capturing the seat on a margin of 12.3 per cent, but he has recently signalled his desire to run in safer Liberal seats after a redistribution shrunk his margin to just five per cent.

In April, he narrowly lost a pre-selection battle for the seat of Hawkesbury to Dominic Perrottet, who has since been elevated to the Baird ministry.

Mr Bassett has reportedly tried to wrest preselection for the western Sydney seat of Riverstone away from sitting Liberal MP Kevin Conolly.