Somyurek scandal claims another scalp

The scandal swirling through the Victorian Labor Party has claimed its second scalp with Assistant Treasurer Robin Scott following factional powerbroker Adem Somyurek out of the cabinet room.

Mr Somyurek's removal, and Mr Scott's resignation, left Consumer Affairs Minister Marlene Kairouz – a key Somyurek ally – in a dicey position with Liberal leader Michael O'Brien calling for her to be dropped from the cabinet as well.

Adem Somyurek leaves his home in Lynbrook on Monday morning.Credit: Eddie Jim

Mr Scott's resignation was the latest twist in a dramatic day in state politics with Mr Somyurek sacked from the ministry, quitting the party and referred to police in the wake of explosive revelations by The Age and 60 Minutes.

And there was farce as well as pathos with the Andrews government's plans to replace Mr Somyurek in disarray after a constitutional block emerged to the Premier's choice for the cabinet vacancy.

On Monday night federal Labor officials were considering a formal intervention into the Victorian branch of the party, concerned about the extent of the branch stacking uncovered by the investigation.

The Age and 60 Minutes on Sunday night revealed Mr Somyurek handed over thousands of dollars in secret cash drop-offs and used political advisers to stack branches with fake members in a bid to amass significant political power inside the party.

Former Victorian premier Steve Bracks and ex-deputy federal leader Jenny Macklin are expected to head a review into Victorian Labor's branch stacking scandal.

Senior sources have told The Age that federal Labor leader Anthony Albanese wants the pair to lead an inquiry into a series of allegations, amid the fallout from the sensational sacking of Mr Somyurek.

But Right faction sources say the union movement is pushing back against Mr Bracks' involvement because of his recent comments saying trade unions "don't represent the bulk of the workforce any longer" and were a diminished and "less influential group".

Mr Albanese's choice of Ms Macklin could also be cruelled by her recent state government appointment to lead the Victorian vocational education review.

Meanwhile, Labor's national president, former treasurer Wayne Swan, announced that "there will never be a place for Mr Somyurek in the ALP ever again", a move supported by Mr Albanese.

The Premier announced that Essendon MP Danny Pearson would replace Mr Somyurek as local government and small business minister.

But the plan to install Mr Pearson in cabinet hit a procedural roadblock after it was realised that Labor had already reached the constitutional limit of 17 ministers from State Parliament's lower house.

But Mr Scott's resignation removed the barrier to Mr Pearson's elevation to cabinet, although the government still faces a challenge in choosing a replacement for the resigning minister from the ranks of its upper house MPs.

At a lengthy and uncomfortable press conference on Monday morning, Mr Andrews announced that the right faction boss had been "terminated".

"Mr Somyurek was not offered an opportunity to resign. He is not worthy of an opportunity to resign. He was sacked," Mr Andrews said.

The Premier said he has referred the allegations to IBAC and the police.

"I have ... asked the Attorney-General to refer all of these matters as canvassed last night on the television and in various newspaper reports today to both Victoria Police and to IBAC and the Attorney-General has written in those terms and those referrals have been made."

In a statement, Victoria Police said it would "assess the complaint and work with IBAC to determine how best an investigation might proceed".

Ms Kairouz and Mr Scott initially kept their jobs in the ministry, after pleading their innocence to the Premier and giving him assurances that they had acted appropriately.

Mr Andrews said he would not ask them to step aside while police and the anti-corruption watchdog investigate.

But Mr Scott resigned on Monday afternoon saying he "found the recent reporting of matters relating to the administration of the party especially confronting".

"To the extent that these matters relate to my conduct, I look forward to the opportunity to clear my name. I am very confident that the investigative process will do so," Mr Scott said.

Mr O’Brien, who had called for Mr Scott and Ms Kairouz to be removed from cabinet while an investigation takes place said he doubted the Premier was unaware of Mr Somyurek’s activities.

Anthony Albanese in Canberra on Monday.Credit: Alex Ellinghausen

“Adem Somyurek, and that group, have been well known for their activities throughout the ... Labor Party and politics for many, many years, so this is no surprise to anybody.”

At his press conference Mr Andrews said he had never undertaken branch stacking himself.

"I follow the party's rules. I'm the leader of the party and I don't think I've got much more to add to that," Mr Andrews said.

Mr Andrews, flanked by his government’s parliamentary leadership team, said it was his decision that Mr Somyurek leave the ministry.

The Premier said he met with Mr Somyurek at 9am with the intention "to essentially end his career as a minister and end his career as a member of the Australian Labor Party and therefore a member of my government".

"It was not a meeting where I was having a debate or discussion with him. I was simply doing him the courtesy of informing him in person of the decisions that I had taken," he said.

In a statement, Mr Somyurek rejected accusations of branch stacking and said he would provide a "rigorous defence".

"It is clear that I was taped and surveilled in a federal electorate office without my knowledge and that this material was published without any knowledge of its existence or my consent," Mr Somyurek said.

The Premier said that he and Mr Albanese had already discussed measures to clean up branch stacking in the party, but would not disclose any details of the plans, saying "today is not the day" to discuss it further.

Mr Albanese said Mr Somyurek's comments "were that of someone who was prepared to denigrate not just people who he saw as his opponents, but also people who were working with him".

It will be Mr Somyurek’s decision whether he chooses to remain in the upper house as an independent member and Mr Andrews said he was not concerned by how Mr Somyurek might act in Parliament in future.

"I have just sacked the bloke. I don’t think [the Labor Party] will be sitting down and doing any deals with him," Mr Andrews said.

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