Premier Morris Iemma says he won't stand one of his MPs aside, despite fresh details about her involvement in the Wollongong Council Scandal.
Parliamentary Secretary Noreen Hay was cleared by the Corruption Watchdog earlier this year after it launched a massive investigation into Wollongong council.
But she's now been thrown into controversy again, with former councillor Frank Gigliotti claiming he was pressured by the Wollongong MP into overturning a council decision.
In a signed statement, Mr Gigliotti claims Ms Hay was acting on behalf of corrupt developer Frank Vellar, to get council to partly fund the development.
Opposition Leader Barry O’Farrell says the revelations are scandalous.
“Morris Iemma has no alternative than to stand her aside to have the matter investigated.”
But Mr Iemma says he has full confidence in Ms Hay.
“There’s no double whammy here, get investigated, get cleared, and then still get sacked. So yes, she still holds my confidence.”