While the alleged donation was ostensibly for a union election,the HSU has long been viewed as a political vehicle by Labor sub-factions,and as a factional base in the ALP for Mr Feeney,a current opposition frontbencher and right faction boss.
Mr Feeney has strenuously denied any knowledge of contributions by Philip Morris to the HSU campaign,saying:''I have not solicited donations from Philip Morris for any purpose since 2004.''
Philip Morris also denied contributing to an HSU election campaign.
''Philip Morris Limited has strict internal approval processes for political contributions,and all political contributions are recorded and disclosed in accordance with applicable laws,''a spokeswoman said.''These records show that no such donation was made.''
The allegation of a Philip Morris donation raises troubling questions for the Labor Party,which has had an official policy against tobacco donations since 2004.
One well-placed labour movement source,aware of the alleged Philip Morris donation,has described it as a''back-door''contribution to the ALP.
Mr Feeney has links to Philip Morris dating back to his time as an ALP state secretary from 1999 to 2002,when the company made donations to Victorian Labor,including $5000 in 1999,$6600 in 2000,and $5000 in 2001.