Independent MP Rob Oakeshott reportedly lobbied Prime Minister Julia Gillard and Opposition Leader Tony Abbott to give one of his biggest political donors preferential access to lucrative Defence contracts.
News Limited reported on Thursday that Mr Oakeshott raised the issue during high-level talks with both leaders on who would become prime minister.
The Daily Telegraph says the MP from NSW admitted on Wednesday to discussing Birdon Marine, a local business in his electorate, during negotiations, but did not reveal the Port Macquarie-based contractor donated thousands of dollars to his political campaigns.
The NSW Opposition has referred Mr Oakeshott's links with the company to the NSW corruption agency for investigation.
The News Limited report said it was understood that between 2002 and 2007 Birdon Marine donated more than $15,000 to Mr Oakeshott's state election campaigns.
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The report says information that was referred to the Independent Commission Against Corruption (ICAC) 10 days ago by the NSW Opposition included claims that Mr Oakeshott lobbied state and federal governments for projects that would have directly benefited Birdon, whose former CEO had also worked as Mr Oakeshott's campaign adviser.
