Mr Marles,now Labor’s deputy leader federally,attended an event hosted by the South-East Labor group in 2016,while former Labor leader Bill Shorten spoke at an event in 2010. Labor frontbenchers and NSW Right faction members Chris Bowen and Tony Burke,as well as former NSW senator Sam Dastyari,were keynote speakers at events in 2013 and 2014.
Mr Byrne said last week that “most of the people that would have attended those functions had a pretty good idea that some of the money that was being raised would go to memberships”.
Counsel assisting the inquiry Chris Carr SC asked Mr Byrne if money from fundraisers went into a “kitty” in the MP’s office which was used to fund membership renewals. Mr Byrne replied that this was “completely accurate”.
Unlike most party fundraisers,South-East Labor event flyers did not include bank account details,so people were encouraged to pay by cash at the door,according to two Right faction sources,who spoke anonymously to detail the improper practise.
Mr Marshall,a powerful union secretary who sits in the Socialist Left faction that opposed Mr Somyurek,said in his complaint that an investigation should happen if it was determined that donation rules were not complied with.
“I can only assume the guest speakers have not been compromised by their attendance,” Mr Marshall wrote in his letter,which referenced the event attended by Mr Andrews.
IBAC Commissioner Robert Redlich speaks during the Operation Watts public hearing in Melbourne.Credit:AAP
Mr Somyurek,a former factional boss accused of leading a wide-scale branch-stacking operation who bitterly fell out with My Byrne,toldThe Age he wanted to know “exactly how much was raised[and] how much went into membership”.
The complaint from Mr Marshall – who is at the centre of a separate corruption investigationinvolving his dealings with the Premier’s office over a pay deal – was not acted upon by the party’s chief decision-making committee,which was controlled at the time by a factional coalition loyal to Mr Somyurek.
The party’s head office attempted to address the complaint in 2018 at five meetings of the administrative committee and one of its sub-committee between July and October. But the Moderate Labor grouping resisted attempts to appoint an auditor to determine whether the fundraised cash was ever sent to the Labor Party’s official bank accounts.
A motion moved by an opposing faction,which was unsuccessful,stated:“The party must respond to serious allegations by ... engaging the ALP solicitors to advise ... on the responsibilities ... where fundraisers are held and money has not been received by the ALP,and the potential legal consequences.”
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The IBAC hearings are part of an inquiry called Operation Watts,which is examining allegations of corrupt conduct involving Victorian public officers,including members of parliament.
It has also explored the practise of branch-stacking,which is against Labor Party rules but not illegal. The commission is exploring whether public funds,including grants were used for factional purposes.
A spokesperson for the Premier said the government would not comment on IBAC proceedings,and spokeswomen for Mr Marles and Mr Shorten said they had no knowledge of the destiny of funds raised at events they spoke at.
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