Victorian Labor minister Luke Donnellan has resigned from Cabinet and will move to the backbench after being accused of branch stacking in public anti-corruption hearings.
Key points:
- Federal Labor MP Anthony Byrne told IBAC Victorian minister Luke Donnellan was involved in branch stacking by paying for other people's memberships
- Counsel assisting IBAC, Chris Carr SC, has told the inquiry there is evidence of systematic rorting of taxpayer resources in the Labor Party
- Mr Byrne told the hearing his party was "completely out of control"
Earlier, Federal Labor MP Anthony Byrne claimed Mr Donnellan paid for other people's membership fees, at the Independent Broad-based Anti-corruption Commission (IBAC) investigation into the misuse of taxpayer-funded staff and community grants.
IBAC is investigating allegations of industrial-scale branch stacking in the Labor Party following a Nine Network expose last year.
Branch stacking, the mass recruitment of people into one branch of a political party in order to amass political influence, is not illegal but is against Labor Party rules.
In a statement, the former minister for child protection, disability, ageing and carers said he had previously breached party rules while a minister.
"But let me be very clear: I never misused public funds or resources in any way. And this has absolutely nothing to do with my staff," Mr Donnellan said.
"However, I don't believe it is possible or appropriate to maintain my ministerial responsibilities given these rule breaches. The work to support vulnerable Victorians is too important, especially during the pandemic."
The Nine report included taped phone conversations and covert video recordings from inside the office of Mr Byrne, who was a former factional ally of former Victorian minister Adem Somyurek.
Mr Byrne told today's IBAC hearings he was involved in branch stacking by paying for other people's memberships fees in the Labor Party since 1999 and claimed the party was "completely out of control".
Mr Byrne said he spent as much as $2,000 of his own money on other people’s memberships in the one year.
He said he was aware Mr Donnellan and Mr Somyurek also paid for other people's memberships.
"I thought the party was completely out of control … I saw and heard things I thought I'd never see in a modern Labor Party," he told the inquiry," Mr Byrne said.
Within hours of Mr Byrne's evidence, senior government sources told the ABC Mr Donnellan had resigned from Cabinet and would remain on the backbench.
The Federal MP claimed Mr Somyurek had been coercing staff for at least two years and had threatened to "take people out" of pre-selections, including Aboriginal Affairs Minister Gabrielle Williams and Member for Cranbourne Pauline Richards.
Mr Byrne also told the inquiry former minister Marlene Kairouz and Upper House MP Kaushaliya Vaghela were involved in branch stacking.
"It was a party who had been taken over by one person whose sole objective was power," Mr Byrne said, referring to Mr Somyurek.
The Nine investigation alleged former minister Mr Somyurek was the chief of a major branch-stacking operation that led him to quit the Labor Party last year before he was expelled.
Former ministers Marlene Kairouz and Robin Scott also resigned from the front bench.
All three MPs have denied they were involved in branch stacking.
Counsel assisting IBAC, Chris Carr SC, told the inquiry there was evidence of systematic rorting of taxpayer resources in the Labor Party.
"One would not have expected that the misuse of public officers for political purposes would have continued after the Ombudsman's report was published in March 2018," he told the inquiry.
Mr Byrne told the inquiry his staff were performing factional work during the day, while they were being paid by the taxpayer.
"If I felt I had a choice, it wouldn't have happened," he said.
When asked about whether other MPs were also doing the same, he said it was very "widely practised."
"Is it clear those in head office turned a blind eye to flagrant branch stacking over the last five years?" counsel assisting asked Mr Byrne.
Mr Byrne is the first witness to appear at the public hearings, which are expected to continue for five weeks.
In a statement, Victorian Premier Daniel Andrews said Mr Donnellan had been a "passionate advocate" for vulnerable kids, people with disability and older Victorians.
However, he did not comment on the branch-stacking matter.
"He leaves a legacy of reform of which he can be proud," Mr Andrews said.
"Due to inquiries currently on foot, I will not be making further comment."
The Victorian Opposition Leader Matthew Guy said the matter was "very troubling".
"This is a matter involving internal Labor Party matters and they are very troubling because they go to the heart of the state government," he said.
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2021-10-11 02:47:38Z
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