Jodi McKay says NSW Labor is in 'terrible state'

ICAC is due to hear from upper house MP Ernest Wong who allegedly told the now suspended NSW Labor boss that the party received a potential illegal donation.

NSW Labor leader Jodi McKay has admitted the party is in a "terrible state" after an anti-corruption inquiry was told a senior official knew about a potentially illegal donation made to the party.

The opposition leader said suspended general secretary Kaila Murnain's career with the party is over and described NSW Labor as being in a "terrible state" following this week's Independent Commission Against Corruption hearings.

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