Wollongong MP Noreen Hay has spoken publicly for the first time since her office was raided by the Australian Federal Police amid enrolment fraud allegations.
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The embattled MP, who has represented Wollongong since 2003, said: "Today I have stood aside as Opposition Whip pending the outcome of an investigation into my office".
"I will continue to assist the AFP with this investigation," Ms Hay said.
"As the matter is subject to a police investigation, I cannot comment further."
In a statement, NSW Opposition Leader Luke Foley said he had discussed the investigation with Ms Hay.
"During our discussion, Ms Hay offered to stand aside as Opposition Whip pending the outcome of the investigation. I agreed that is the most appropriate course of action," Mr Foley said.
"I maintain that Ms Hay is entitled to due process. I understand Ms Hay has offered the AFP every assistance with the investigation, and continues to do so."
A spokesman for the AFP confirmed on Thursday night a search warrant was executed on Wednesday, as part of an investigation into allegations of ‘‘enrolment fraud’’.
The Mercury has been told Ms Hay was not present during the raid, which happened about midday and involved two AFP officers.
The raid was prompted by a referral from the Australian Electoral Commission that was received by the AFP on December 8 last year.
The referral was lodged just two days after Ms Hay was re-endorsed in a controversial Wollongong Labor preselection ballot, however it is unclear who the allegations have been made against or what they relate to.
The preselection process was plagued by allegations of branch stacking, doctored minutes and dodgy attendance books.
It is also unclear what was taken from the office.
On Thursday night, a spokesman for Mr Foley said Ms Hay and her office ‘‘have offered the AFP every assistance in the investigation’’.