At last week's budget estimates hearings, Liberal upper house MP John Ajaka asked why the Local Government Minister, Barbara Perry, had not requested the department investigate Mr Lalich's decision not to declare an interest in an application from someone who he had received a donation from.

Ms Perry referred the question to department chief executive officer, Ross Woodward, who said the matter was being looked at.

``It was referred to us by the Independent Commission Against Corruption following some representations made to it,'' he said.

``ICAC has referred the matter to us for information and for appropriate action if necessary, so we are currently looking at that matter.

``It was not referred to us for review; it was referred for information.''

A spokeswoman from the Department of Local Government said ICAC had said it would not pursue

the matter.

``ICAC also indicated in its referral that we may take whatever action is deemed appropriate,'' she

said.

``We are reviewing the complaints about this matter.''

The matter happened in March, when a development application for Fred's Fruit Market came before Fairfield Council.

The business's owner Fred Pisciuneri had donated to Labor, but Mr Lalich did not declare the donation at the council meeting, only calling it a non-significant non-pecuniary conflict of interest.

Mr Lalich told the Champion this week: ``I do not intend to make any more comment to assist in Liberal Party point scoring,''.

In March, Liberal upper house MP Charlie Lynn referred the matter to the ICAC after Mr Lalich did not declare the $2000 donation.