A Queensland-based far right organisation says it spent thousands of dollars bankrolling a Canberra group's fight against the Gungahlin mosque.
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But the Concerned Citizens of Canberra denies it received the $8000 bonanza from Restore Australia.
Restore Australia claims, via online posts, that it donated $8000 to help fund the Canberra group's legal challenge to block the mosque.
The alleged contribution would represent more than 10 per cent of the total donations received by the Concerned Citizens, which raised $103,883 – including $77,170 in donations and $940 in member subscriptions – over the past two years.
The group has campaigned against the planned 500-capacity mosque on The Valley Avenue since August 2012.
But it recently suffered a costly loss in the ACT Supreme Court, where it had sought unsuccessfully to block construction on planning grounds, including "social impact", "public interest" and concerns about traffic and noise.
Concerned Citizens is appealing against the decision but further cash losses could also loom, with the ACT government applying to secure legal costs if the court allows the mosque to proceed.
Financial documents lodged with the ACT Office of Regulatory Services show Concerned Citizens spent $99,335 on legal fees last financial year, marginally less than its total income.
Restore Australia issued a call for donations on its website and then later reported $8000 had been raised.
Restore Australia chief executive Mike Holt told Fairfax Media he had forwarded the $8000 to Concerned Citizens of Canberra president Irwin Ross.
"[It came] from contributors, people all over Australia donating money," he said.
Mr Holt said his group had no plans to provide further financial assistance unless asked.
Mr Holt, a former One Nation candidate, said Restore Australia had combined with at least two other groups to collect the donations, which were then processed through his website's online account.
He declined to name the groups because they were having "security issues".
Restore Australia also runs a group called Islam4Infidels, which provides advice on how to oppose the construction of mosques and Islamic schools.
Restore Australia has been linked previously to the Victorian chapter of the Patriot Defence League Australia and to opponents of the Bendigo mosque.
A post on Restore Australia's website that called for donations referred to Mr Ross as a "brave patriot" who "mortgaged his home to take the case to the Supreme Court".
"We do not believe anyone should lose their home for standing up to preserve our country," the website says.
But Mr Ross told Fairfax Media the Concerned Citizens had accepted no money from Restore Australia.
"We haven't received anything from them, so I'm assuming that it's a bogus post," Mr Ross said.
"I don't know [why Restore Australia would claim to have made the donation], I would have to find that out."
Mr Ross declined to divulge where the $77,170 in donations had come from.
"That's our private information. It's come from the public," he said.
"Different organisations have all sorts of appeals."
In July, the Concerned Citizens' challenge on planning grounds was thrown out of the ACT Supreme Court.
The group has since applied for permission to appeal against that decision and its bid will be heard on November 14.
The Concerned Citizens has previously argued the development should be refused because of its "social impact", "public interest" and concerns about traffic and noise.
In court, it disputed the planning authority's refusal to extend the public consultation period and argued against the decision to approve the development.
But the recent loss was pricey: Master David Mossop ordered costs against the group in the July decision, estimated to be in the thousands.
The controversial lobby group was also forced to stump up a $25,000 security to the court in 2013.