The Australian Electoral Commission withdrew its 1998 demand that Tony Abbott reveal the donors to his ‘honest politics’ slush fund without seeing Mr Abbott’s legal advice or taking its own.

The AEC man then responsible for disclosure of political donations, Mr Brad Edgman, told the Herald that he backed down after Mr Abbott wrote claiming he had legal advice that he need not disclose the donors. Mr Edgman said he had never seen that advice, and did not get his own legal advice before bowing to Mr Abbott’s demand to maintain secrecy.

The AEC has refused for more than a week to disclose the basis of its backdown in 1998, but Mr Edgman said yesterday he made the decision, along with his superior,based on Mr Abbott’s letter, the ‘honest politics’ trust deed, and a look at the law concerning “associated entities’ of political parties.

Asked why he decided the honest politics trust was not an associated entity of the Liberal Party, Mr Edgman said: “I’d have to go back and have a look at it.” Mr Edgman is now director of the AEC’s parliamentary and ministerial section.

Asked why he took eight months to reply to Mr Abbott’s letter claiming secrecy for his donors, he said: “I couldn’t tell you, I really don’t know what the delay was about.”

Several electoral experts have challenged the AEC on its decision, saying the trust was clearly or at least possibly an “associated entity” of the Liberal Party The AEC took legal advice only after Labor warned that setting up legal slush funds to destroy other parties created a huge loophole in political donations disclosure laws. But it will not release that advice, and admitted yesterday it was not even investigating the matter in light of new developments since the jailing of Pauline Hanson. The AEC said it was merely “monitoring” media reports.