Dobell MP Karen McNamara is considering taking legal action against a local group, claiming it made defamatory accusations about her.
Last week, the Central Coast Community Union Alliance called for the suspension of four Central Coast MPs, including Mrs McNamara, claiming all were subject to an ICAC investigation into allegations of illegal donations.
But Mrs McNamara says she is not under investigation and the comments made are unfounded and extremely offensive.
The matter has now been referred to her solicitor.
The group has since retracted its statement and an apology has been forwarded onto the MP.
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