An influential member of the NDP in B.C. has testified at the Bingogate inquiry about a financial deal involving the Nanaimo Commonwealth Holding Society.

Former cabinet minister Bob Williams resigned his seat in the legislature in the mid 1970s to open up a "safe seat" for party leader Dave Barrett.

Documents before the inquiry show the day before Williams resigned, he was given an $80,000 contract by the NCHS. At the time, that was the equivalent of an MLA's salary for four years.

Williams then went to work for the NDP caucus despite the fact he was technically employed by the NCHS. Some months later, party executives decided to clarify the working arrangement, by asking Williams to work directly for the party.

That was an arrangement inquiry commissioner Murray Smith found questionable. "This seems like a bit of a sham in the sense that you were already working for the party," he says, "so why would an approach be required to inquire as to your willingness?"

Williams says he didn't know the money he was getting was being skimmed from charity funds. Eventually, the $80,000 paid to Williams was refunded to the NCHS.

The parade of NDP luminaries continues Wednesday, with former premier Dave Barrett getting on the witness stand.