These community soccer clubs received funding after donating to Labor MPs’ campaigns

Two NSW Labor MPs collectively allocated $100,000 in funding to organisations that donated thousands of dollars to their campaigns before the last state election.

Industrial Relations Minister Sophie Cotsis and Liverpool MP Charishma Kaliyanda received $1600 and $1100 contributions, respectively, from two community sporting clubs – the first election either organisation had made a reportable political donation.

The Local Small Commitment Allocation has faced considerable scrutiny since being announced before the 2023 state election. The scheme provided each of the 93 Labor MPs and candidates across NSW with $400,000 to nominate community groups for funding.

The Coalition, Greens and public accountability experts have criticised the $37.2 million scheme’s equity, efficacy and probity processes. MPs’ allocation of funding to organisations they had received donations from has not previously been publicly reported.

Three weeks before the March 2023 election, Cotsis congratulated Earlwood Wanderers Football Club, in the inner west, on being nominated for $15,000 under the LSCA – money that went toward building a cage to store equipment and funding a female football program.

Ten days later, NSW Electoral Commission disclosures reveal the club donated $1600 to Cotsis. The March 14 donation appears as the only reportable contribution the club has made to any political organisation or MP. The club did not respond to requests for comment.

Cotsis’ office on Wednesday referred questions about the timing of the donation and the funding announcement to the Premier’s Office.

In comments provided on Thursday, Cotsis said she would not apologise for ensuring local organisations can access funding they are eligible for.

“Earlwood Wanderers’ application was considered on its merits, like any other local club that plays an important role in supporting young people and the broader community,” she said.

Liverpool Olympic Sports and Social Club similarly donated $1100 to Kaliyanda in late February 2023. A similar donation of $1280 was made to the party’s Leppington candidate, Nathan Hagarty, two days earlier. They are the club’s only two reportable political donations.

Kaliyanda then nominated the club for $85,000 in funding for upgrading Hoxton Park Reserve. It was the second-largest funding allocation the then-candidate made under the scheme.

The date of the funding allocation is unclear. The allocation is absent from the original list of projects nominated for grants that was to be delivered by council rather than the football club.

The club received $85,000 as part of Kaliyanda’s allocations through the LSCA for upgrades to the Hoxton Park Reserve, including new canteen facilities and field lighting upgrades.

Kaliyanda said she had raised the conflict of interest before the election but did not respond to questions about the genesis of the donation, or how she determined the club should receive funding rather than other community organisations.

Instead, she provided a near-identical statement to one from the office of Special Minister of State John Graham.

“Projects were assessed by an independent panel for merit, value for money, and deliverability, and MPs played no role in that decision-making,” Kaliyanda’s statement said. “Who organisations donate to is a matter for them. Many organisations and business donate to both sides of politics.

“Liverpool Olympic FC has served families in my community for over 40 years. Anyone who believes local sports clubs don’t deserve modest grants to upgrade local facilities should say so – there were a broad range of projects of vital importance to our community that were funded.”

Chris Rath, a Liberal frontbencher who sits on the parliamentary inquiry examining the LSCA scheme, said the matter “doesn’t pass the pub test”.

“It is highly unusual and irregular for MPs to be soliciting donations from the local community groups they are meant to serve. It is questionable what would motivate someone to hand over money that mums and dads give to their kids’ soccer club to a Labor political campaign,” he said.

Neither Kaliyanda or Cotsis’ funding nominations were subject to a ministerial-commissioned review of projects funded under the LSCA scheme in October 2023.

A NSW government spokesperson said: “Small local projects are being funded to a total of $400,000 in every electorate around NSW. This is in stark contrast to the fire hose of pork-barrel funds the Coalition funnelled into Liberal and National Party electorates under John Barilaro.”

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