High-profile New South Wales Labor senator Sam Dastyari is facing mounting calls to explain why a company with links to the Chinese Government repaid a debt on his behalf.

Conservative Liberal senator Cory Bernardi last night demanded an explanation, saying the donation had “all the hallmarks of a dodgy deal”.

“A senator who owes a debt to the Commonwealth for mismanaging his electorate budget is now being bailed out by a company that is closely linked to the Chinese Government,” Senator Bernardi told 7.30.

“The director of it has very close links to the Chinese Government.

“That is cause for a Senate inquiry.”

Top Education Institute’s chief executive is Minshen Zhu.

Dr Zhu has reportedly been photographed with senior Chinese officials, including Premier Li Keqiang, and the Chinese Government is said to recommend the training provider.

Senator Dastyari said the payment had been disclosed in accordance with the rules but understood community concerns.

Greens echo Bernardi’s concerns

In an rare alliance, the Greens have echoed Senator Bernardi’s concerns, saying the arrangement “does make for disturbing reading”.

“Senator Dastyari has certainly overstepped any reasonable way of engaging with overseas, well cashed up interests,” the party’s democracy spokeswoman Lee Rhiannon said.

Top Education Institute chief executive Dr Minshen Zhu. Photo: Top Education Institute

“Senator Dastyari should make a personal explanation about what he received from this overseas donor linked with the Top Education Institute and anything else he needs to reveal to the Senate.

“Otherwise there could be certainly grounds for an inquiry and the Greens would look closely at any terms of reference.”

An October 2015 update to the senator’s interests register said: “Support for settlement of electorate staff travel budget overspend paid by Top Education Institute”.

Senator Dastyari said the debt was about $1600.

He declined interview requests, but in a statement said the Chinese payment was appropriately disclosed on his pecuniary interests register.

The senator said he was donating an equivalent amount to charity.

“While fully disclosed, understand concern, so I’m donating the amount to charity,” he tweeted.

Dastyari’s history of Chinese financial support

Chinese-linked organisations have previously bankrolled travel, catering and legal bills for the NSW Senator, according to his register of interests.

A November 2014 disclosure showed the Yuhu Group — a subsidiary of a state-linked operation based in China — helped settle a legal matter.

In the same year, Senator Dastyari revealed the Australia China Relations Institute paid to cater an afternoon tea for the senator.

Flights, accommodation and hospitality for a 15-day trip to China in 2014 were funded by the Australian Fellowship of China Guangdong Associations Incorporated.

And a nine-day trip in January this year was supported by the China Australian Guangdong Chamber of Commerce Incorporated.

An ABC investigation this month revealed businesses with Chinese connections gave Australia’s major parties more than $5.5 million between 2013 and 2015, making them easily the largest source of foreign-linked donations.

The probe of public declarations and company information showed some have strong ties with state organisations in China.

Australian defence and intelligence agencies are increasingly uneasy about the level of Chinese Government influence.