Two Liberal Party MPs have quit the party after sensational allegation were aired in the Independent Commission Against Corruption, including that New South Wales MP Andrew Cornwell was offered $10,000 in a brown paper bag by Newcastle mayor Jeff McCloy just before the 2011 State Election. The boss of the Federal Liberal Party, Brian Loughnane, has also been caught up in the latest claims at ICAC. The hearing was told that emails allegedly showed that Mr Loughnane had been aware that property developer donations had been paid through federal channels, to avoid state laws. Scroll down for video . Liberal MPs Andrew Cornwell and Tim Owen have been forced to quit the NSW Liberal Party . Liberal Party campaign manager Rod Boswell (right) arrives to give evidence at ICAC in Sydney today . Liberal Party federal director Brian Loughnane . Political donations from property developers have been banned in NSW since 2009. Dr Cornwell told ICAC he was offered the money by Mr McCloy while sitting in the mayor's Bentley. In his opening address, counsel assisting the inquiry Geoffrey Watson SC said Dr Cornwell handed the money to a Liberal party colleague. Counsel assisting, Geoffrey Watson, during his opening address at the ICAC hearing into Liberal Party fundraising in Sydney . 'It would seem to us these actions were the result of inexperience,' Mr Watson said. There is no evidence that Mr Cornwell gave any preference to Mr McCloy. The money was fed through a company called Harmony Hill and eventually funnelled back to the Liberal Party. In another incident highlighted today, it was heard that Dr Cornwell gave Hunter region developer Hilton Grugeon a painting that he insisted on paying for. Mr Grugeon wrote a cheque for more than $10,000 for an 'embarrassed' Dr Cornwell. Dr Cornwell checked with his parents, both of whom are trained lawyers, and it was determined there was nothing wrong with accepting the cheque. The cheque was cashed and the money used in Mr Cornwell's 2011 campaign for the seat of Charlestown. Mr Watson said the inquiry will examine most or all of the Liberal Party finance executive. Councillor McCloy declined to comment on the allegations levelled against him. 'I must wait until I have my turn in the box,' he said. 'You'll hear my evidence in a few days.' City of Newcastle Greens Councillor Michael Osborne said Mr McCloy must stand aside as mayor during the ICAC's investigations. 'He should really do the right thing and stand aside so that Newcastle council doesn't get tainted by this air of corruption,' he said.
Liberal MPs Andrew Cornwell and Tim Owen have resigned from the Liberal Party after sensational evidence at the Independent Commission Against Corruption today .
Dr Cornwell - the MP for Charlestown in NSW - is alleged to have accepted $10,000 in cash in a brown paper bag.
ICAC heard the bag full of $100 bills was presented to him by Newcastle mayor Jeff McCloy during a meeting in his Bentley before the 2011 state election.
Newcastle MP Tim Owen also stepped down after allegations some of those who campaigned for him were funded by property developers .
Federal Liberal Party director Brian Loughnane allegedly knew about property developer donations .
Two Liberal Party MPs have quit the party after sensational allegation were aired in the Independent Commission Against Corruption, including that New South Wales MP Andrew Cornwell was offered $10,000 in a brown paper bag by Newcastle mayor Jeff McCloy just before the 2011 State Election. The boss of the Federal Liberal Party, Brian Loughnane, has also been caught up in the latest claims at ICAC. The hearing was told that emails allegedly showed that Mr Loughnane had been aware that property developer donations had been paid through federal channels, to avoid state laws. Scroll down for video . Liberal MPs Andrew Cornwell and Tim Owen have been forced to quit the NSW Liberal Party . Liberal Party campaign manager Rod Boswell (right) arrives to give evidence at ICAC in Sydney today . Liberal Party federal director Brian Loughnane . Political donations from property developers have been banned in NSW since 2009. Dr Cornwell told ICAC he was offered the money by Mr McCloy while sitting in the mayor's Bentley. In his opening address, counsel assisting the inquiry Geoffrey Watson SC said Dr Cornwell handed the money to a Liberal party colleague. Counsel assisting, Geoffrey Watson, during his opening address at the ICAC hearing into Liberal Party fundraising in Sydney . 'It would seem to us these actions were the result of inexperience,' Mr Watson said. There is no evidence that Mr Cornwell gave any preference to Mr McCloy. The money was fed through a company called Harmony Hill and eventually funnelled back to the Liberal Party. In another incident highlighted today, it was heard that Dr Cornwell gave Hunter region developer Hilton Grugeon a painting that he insisted on paying for. Mr Grugeon wrote a cheque for more than $10,000 for an 'embarrassed' Dr Cornwell. Dr Cornwell checked with his parents, both of whom are trained lawyers, and it was determined there was nothing wrong with accepting the cheque. The cheque was cashed and the money used in Mr Cornwell's 2011 campaign for the seat of Charlestown. Mr Watson said the inquiry will examine most or all of the Liberal Party finance executive. Councillor McCloy declined to comment on the allegations levelled against him. 'I must wait until I have my turn in the box,' he said. 'You'll hear my evidence in a few days.' City of Newcastle Greens Councillor Michael Osborne said Mr McCloy must stand aside as mayor during the ICAC's investigations. 'He should really do the right thing and stand aside so that Newcastle council doesn't get tainted by this air of corruption,' he said.
sensational allegation were aired in the Independent Commission Against Corruption, was offered $10,000 in a brown paper bag by Newcastle mayor Jeff McCloy just before the 2011 Loughnane had been aware that property developer to avoid state laws. Scroll down for video . Liberal MPs Andrew Cornwell and Tim Owen have Sydney today . Liberal Party federal director Brian Loughnane . Political donations from property developers have been banned in NSW since during his opening address at the ICAC hearing highlighted today, it was heard that Dr Cornwell