IBAC charges four people in probe of alleged Labor cash-for-stacks printing rort
A fourth person has been charged by anti-corruption investigators with a string of serious criminal offences in connection to an alleged Labor printing rort.
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A fourth person has been charged by anti-corruption investigators with a string of serious criminal offences in connection to an alleged Labor printing rort.
The independent Broad-based Anti-corruption Commission on Thursday slapped three people, including two former electorate officers, with a total of 13 charges.
They relate to alleged conspiracy to attempt to pervert the course of justice, perjury, conspiracy to mislead IBAC and disclosure of IBAC information.
On Friday morning, IBAC announced a fourth person had also been charged as part of Operation Naxos.
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The people charged are due to appear in court next month.
Despite the major escalation in its 15-month investigation, the commission is continuing to probe the alleged “cash-for-stacks” scheme, which was revealed by the Herald Sun last year.
Whistleblowers alleged that parliament was billed for false invoices for printing work never done, with taxpayers’ money instead funnelled to pay for Labor Party memberships. The scheme allegedly involved invoices worth as much as $200,000.
IBAC said in a statement: “The charges relate to an IBAC investigation, Operation Naxos, into allegations of fraudulent practices within the electorate office of a former member of the Victorian parliament.”
The scandal engulfed the electorate office of former Upper House MP Khalil Eideh, who retired at the November 24 election but denied wrongdoing. He called for a full audit in the wake of the Herald Sun’s revelations.
Parliament took control of Mr Eideh’s office, with staff locked out and sent on indefinite leave.
It launched a review of the allegations, through the Department of Parliamentary Services, before IBAC was called in.
Just weeks after it began its probe, investigators raided the home of Mr Eideh’s office manager, Robert Mammarella, and a backyard printing firm in Keilor East, seizing mobile phones, flash drives, files, computers and other evidence. Whistleblowers had linked the business — F & M Printing, whose owners were thought to be Labor Party members — to the alleged scheme.
The printing firm was used by the offices of several federal MPs, including Labor leader Bill Shorten and factional powerbroker Kim Carr.
Both have previously denied any knowledge and called for the alleged rort to be fully investigated.
The alleged scheme was one in a string of scandals, including the red-shirts rort, to hit the Andrews Government last term.
Mr Mammarella’s son, Justin, withdrew as a Labor candidate in the safe seat of Melton in October as IBAC eyed possible charges over the alleged printing rort.
The Labor Party cited family reasons for his withdrawal.
The charges laid on Thursday will cause headaches for Premier Daniel Andrews and the Labor Party, who would have hoped for a clean slate after last month’s sweeping election win. Opposition scrutiny of government spokesman Tim Smith said the charges were “just the tip of the iceberg”.
Neither Mr Eideh nor Mr Mammarella returned calls for comment last night.
The Herald Sun is not suggesting either has committed any wrongdoing.
ALLEGED SCAM WAS A LICENCE TO PRINT MONEY
It was described as the “oldest scam in the book”.
But when Labor whistleblowers contacted the Herald Sun last year, they claimed that hadn’t stopped their party colleagues from trying to pull one over the taxpayer.
The alleged rort was elaborate but not impossible to detect.
Electorate officers working for state MPs were accused of creating false invoices to claim payments from parliamentment for printing work that was never done.
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Printing firms, which were allegedly in on the scam, took a small cut and sent the rest of the cash back to MPs’ offices.
Three ALP members claimed the money was then used to pay for hundreds of party memberships for supporters of the MPs.
When the Herald Sun’s “Labor Cash Stacks” front page hit the pavement on September 6 last year, it sent shockwaves through the government and sparked a day of drama on Spring St.
Labor figures rushed to find out who was involved in the scandal, and it emerged the allegations centred on the office of upper house deputy president Khalil Eideh.
Mr Eideh and his electorate office manager Robert Mammarella denied any wrongdoing, as did the owners of F & M Printing, the backyard business in Keilor East which was allegedly involved.
A parliamentary investigation was launched, and the independent Broad-based Anti-corruption Commission was called in as well.
The anti-corruption watchdog didn’t muck around. Six weeks after the Herald Sun exposed the alleged rort, IBAC officers descended on the F & M Printing and Mr Mammarella’s Cairnlea home.
The Herald Sun is not suggesting Mr Eideh or Mr Mammarella engaged in any wrongdoing.
The dramatic escalation of the probe spooked Labor insiders — but the investigation went eerily quiet for a year, as IBAC held hearings behind closed doors with people connected to the alleged rort.
IBAC on Thursday announced three people had been charged with a string of serious offences relating to conspiracy to attempt to pervert the course of justice, perjury, conspiracy to mislead IBAC, and disclosure of IBAC information.
The trio face court next month. Investigators asked for “anyone with credible information” to come forward.
TIMELINE
SEPTEMBER 5, 2017
The Herald Sun reveals bombshell claims from Labor whistleblowers alleging hundreds of thousands of taxpayer dollars were siphoned from MPs’ printing budgets to pay for party memberships.
SEPTEMBER 6
Labor Upper House MP Khalil Eideh’s electorate office and Keilor East firm F & M Printing are linked to the allegations. Parliament launches an investigation into the claims.
SEPTEMBER 14
The independent Broad-based Anti-corruption Commission is asked to investigate the scandal after invoices worth more than $200,000 are analysed in the parliamentary inquiry. The Herald Sun reveals federal MPs including Opposition Leader Bill Shorten also used F & M Printing.
OCTOBER 17
Eideh stands down as Legislative Council deputy president as investigations continue. He had previously defended himself over the allegations, but said he’d retire at the 2018 election.
OCTOBER 20
The Herald Sun reveals IBAC investigators raided F & M Printing and the Cairnlea home of Western Metropolitan electorate office manager Robert Mammarella, who worked for Eideh. Phones, computers, files and flash drives are seized.
JULY 25, 2018
Eideh quits as Legislative Council deputy president.
OCTOBER 25, 2018
The Herald Sun reveals charges are imminent after a series of closed IBAC hearings to question those allegedly involved. Robert Mammarella’s son Justin withdraws as Labor’s candidate for Melton.
THURSDAY
Three people including two former electorate officers are hit with 13 charges by IBAC, relating to conspiracy to attempt to pervert the course of justice, perjury, conspiracy to mislead IBAC, and disclosure of IBAC information.
Originally published as IBAC charges four people in probe of alleged Labor cash-for-stacks printing rort
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