Staffer claims Labor culture allowed misuse of public funds as explosive texts exposed at IBAC probe

A former staffer for Adem Somyurek has unleashed on the culture within Labor and claimed her then boss “spat venom” over her decision not to take an influential role in the CFMEU.

Elle Schreiber was paid by Victorian taxpayers to work on their behalf, but when factional duties called she barely did so.

In brutal testimony to the Independent Broad-based Anti-corruption Commission, Ms Schreiber, who worked for ­former state minister Adem Somyurek and federal MP ­Anthony Byrne, detailed her involvement in a brazen culture that valued defeating factional rivals and amassing power above delivering anything for the Victorian public.

The Labor factional power plays became so intense that Ms Schreiber estimated 80 per cent of some working days would be dedicated to handling party memberships.

Along with two other staffers, Adam Sullivan and Oscar Goodwin, she would attend monthly internal Labor Party meetings that approved membership applications.

The responsibilities ­requir­ed a lot of work during and out­side of office hours.

Ms Schreiber said she would cross-check ­applicat­ions looking for incorrect addresses or missing signatures – that would be “held over” to be dealt with at future meetings, if legitimate – in an effort to prevent stacking at local branches.

But Ms Schreiber said it was also expected she help usher through new members linked to Mr Somyurek’s faction even if their forms were incorrect.

“Do I correctly understand the job that you were doing was to try and get your members – those aligned to Moderate Labor – through, and to prevent those from opposing factions going through?” counsel assisting the commission Chris Carr SC said. “Yes, that is correct,” she said.

Elle Schreiber was a staffer for Adem Somyurek. Picture: IBAC video link

In evidence exposing the scurrilous practice across the party, IBAC heard that most other Labor factions were understood to be doing the same thing.

The party processes introduced to stop branch-stacking were being openly mocked and bypassed by young Labor figures, union representatives and government staffers.

Campaign Central, a collection of local electoral roll information and other details stored by Labor headquarters, was regularly used to get one-up on rivals.

Electorate officers can typically only view details of voters in their patch. However, Ms Schreiber detailed how, within the system, an account for MP Marlene Kairouz’s staffer, Nick McLennan, was linked to other electorates so that the details of Victorians across the state could be checked.

She said there was never a debate about whether party ­activities should have happened outside of work hours while she was being paid by the taxpayer.

During a busy day, she was asked to call factional allies and fill out spreadsheets full of membership details in the ­expectation they would be done immediately.

If a party meeting went late or ran into free time, staffers could come to work late.

Small business was Mr Somyurek’s portfolio but not seen as an intensive one – ­despite being the biggest ­employer in the state. His staffers were perceived to be available for more factional work.

Ms Schreiber said she came to Mr Somyurek’s office as a political cleanskin who had only worked for government departments. But she rapidly rose through party ranks, an ascent which only ended when she questioned what she was being asked to do.

Adem Somyurek at Fountain Gate Shopping Centre before being called before a corruption inquiry. Picture: Tony Gough

By August 2019, Mr Schreiber had taken a $40,000 pay cut to work in Mr Byrne’s office. She told IBAC that Mr Somyurek took her out to coffee and proposed she work for the CFMEU in a role liaising with the government. It would come with better pay, improved benefits and access to government ministers.

When asked by lawyers assisting IBAC, Ms Schreiber agreed she was being offered a chance to wield more power.

But when she rejected the offer, she said Mr Somyurek reacted badly and labelled his factional ally, Mr Byrne, a “f---ing idiot” and “lazy”.

“He was mad like a cut snake; he spat venom at me,” she said.

“A month before he was just telling me it (the federal role) would be an incredible job, and now he’s doing this because he’s not getting his own way.

“I felt like I was the lamb being led to wolves.”

But Ms Schreiber did not excuse herself for the shocking behaviour detailed to IBAC.

When asked why she hadn’t reported the fact she was being asked to do party work while be paid by the public purse, she said she couldn’t because “That was the job”.

It all came crashing down when Ms Schreiber said she had been told for weeks that she would be elected to Labor’s powerful administration committee in 2019. But she said she missed out because she had turned down the CFMEU role.

“I said to Anthony (Byrne), ‘I can’t do this anymore. I don’t want to be a part of the Labor Party’,” Ms Schreiber said.

“And he said, ‘That’s your choice, kiddo’. And then I just got out of it.”

Elle Schreiber as a witness at the IBAC hearings.

EXPLOSIVE TEXTS EXPOSED AT IBAC PROBE

Anthony Byrne has been accused of playing a major role in branch stacking and of sending text messages about cutting a factional rival’s throat during public anti-corruption commission hearings.

He also confirmed to the watchdog that he was aware of, and had seen evidence of, branch stacking from other factions, including the Premier’s own Socialist Left in the southeast.

On Monday, Mr Byrne said he had some involvement in branch stacking and that employees in his office had participated in party political activity out of his office, an alleged misuse of taxpayer funds.

But he also painted a picture of Adem Somyurek as the key figure in this arrangement and that many activities were done at the upper house MP’s request or out of fear.

On Tuesday, Mr Somyurek’s lawyer Remy Van de Wiel, QC, sought to challenge some of Mr Byrne’s evidence to the Independent Broad-based Anti Corruption Commission.

He asked the Holt MP about his role in liaising with ethnic communities in 1996 and whether he had assisted branch stacking operations while working for former senator Jacinta Collins.

“I was recruited by Senator Collins I think it was in April 1996,” Mr Byrne said.

“I was told initially that part of my job would from time to time be taking quote-unquote some Turks to some branch meetings.”

“Upon my arrival in Melbourne that matter became significantly different to what I had expected.

“There was a fairly substantial conflict, for want of a better term, between the Socialist Left and the right.

“I was asked to help assist in that period … To assist the right in bringing people into the Labor Party.

Former Labor staffer Steve Michelson.

“I was asked in that period, particularly in 1996, to liaise with some community leaders for the purposes of asking them if they could get members to join the Labor Party.”

In chaotic scenes, Mr Somyurek could be heard whispering to his lawyers throughout the cross examination and Mr Van de Wiel was cautioned that his comments were audible.

Counsel assisting the commission, Chris Carr SC, also quizzed Mr Byrne about whether branch stacking had been performed by the Socialist Left faction and how he knew about other factional operations.

“Observations, I think, and some activity that I saw, some in the southeastern region and some elsewhere,” Mr Byrne said.

Earlier on Tuesday, the commission heard details of text messages sent from Mr Byrne from Mr Somyurek’s lawyers about frustration with former Bill Shorten staffer Steve Michelson.

This included an exchange in which he said “the second meeting is where we cut Michelson’s throat”.

In a text message in March, 2019, Mr Byrne allegedly said: “Wish we could destroy him now.”

“F--- Michelson,” Mr Byrne allegedly says in the text message, which was read out to the inquiry by Mr Somyurek’s lawyer.

Mr Byrne said he didn’t recall the text but Mr Somyurek had made it clear he saw Mr Michelson as a problem.

“I also want to humiliate him at the same time as the preselection so he is unemployable as just punishment from the grief he is causing us,” Mr Byrne’s message continued.

“I really do want to kill him. This is personal for me now.”

It comes after IBAC heard allegations that Mr Michelson had made a $5000 contribution to Mr Byrne’s and Mr Somyurek’s factional grouping because he wanted support to run for the federal seat of Isaacs.

Mr Michelson has already denied any suggestions of wrongdoing.

The commission also heard details of a text exchange from Mr Byrne about Luke Donnellan, who resigned from cabinet this week.

It alleged he described Mr Donnellan as his “political son who I put into parliament but he has to toughen up”.

ALBANESE GRILLED OVER IBAC SCANDAL

Anthony Albanese is refusing to take action against Anthony Byrne, despite the federal Labor MP making bombshell admissions about branch stacking and misuse of taxpayer-funded staff.

The federal Labor leader rebuffed questions on Tuesday morning about whether Mr Byrne should remain a member of his team.

He said he did not know about Mr Byrne’s conduct before Monday.

“We will allow the IBAC processes to take their course,” Mr Albanese said.

“It’s not appropriate for me to comment on the specifics while IBAC’s procedures are taking place.”

“It’s important that they be allowed to take their course.”

Mr Albanese said he acted “strongly, immediately, decisively” last year when the branch stacking scandal was first exposed.

He and Daniel Andrews ordered an intervention into the party’s Victorian branch and appointed former premier Steve Bracks and ex-federal minister Jenny Macklin as administrators.

When pushed about Mr Byrne’s admissions at Monday’s IBAC hearing, Mr Albanese said he didn’t follow “every word”, but added that “if there are any improper practices, they are improper”.

Anthony Albanese refuses to take action against Anthony Byrne. Picture: Jeremy Piper

“I will stamp out corruption wherever I see it,” he maintained.

Former Labor leader Bill Shorten said “hard evidence” was revealed on Monday, but cautioned against immediate action against Mr Byrne, saying IBAC’s hearings had “only just started”.

“Let’s reserve a bit of judgment until we’ve heard all the evidence,” he said.

Senior Liberal figure Greg Hunt said Mr Albanese was facing a number of tests.

“Three federal Labor members of Mr Albanese’s caucus have now been implicated in alleged activities,” Mr Hunt said.

“What did he know or when did he forget it; these are the questions.

“He seems to take the Sergeant Schultz approach of ‘I know nothing’ and it’s a very common position for him.

“There has been a long time to look. If he hasn’t been looking, he hasn’t been trying.”

LUKE DONNELLAN STANDS DOWN

Luke Donnellan sensationally quit the Victorian cabinet on Monday after Anthony Byrne’s allegations.

Mr Donnellan stood down from his portfolio of aged care and disability but will remain on the backbench.

The move came hours after Mr Byrne told the Independent Broad-based Anti-corruption Commission (IBAC) that Mr Donnellan had paid for party memberships when being quizzed about branch stacking.

He is the fourth MP forced out of cabinet as part of the secret tapes scandal centred around powerbroker Adem Somyurek.

Premier Daniel Andrews denied ever purchasing Labor memberships for people, amid an IBAC probe into his party’s conduct.

Minister Luke Donnellan stepped away from Victorian cabinet. Picture: Sarah Matray

“No is the answer to your question,” Mr Andrews said outside parliament on Tuesday.

“I follow the party’s rules and I behave appropriately.

“I’d expect all my colleagues (to) behave appropriately at all times.”

Mr Donnellan was elected in 2002 as the MP for Narre Warren North and has been the Minister for Child Protection and the Minister for Disability, Ageing and Carers since December 2018.

Deputy Premier James Merlino declared outside Parliament House on Tuesday morning that he had never branch stacked or paid for a party membership for someone else.

Mr Merlino, who already serves as Education Minister and Mental Health Minister, was on Monday night given Mr Donnellan’s disability, ageing and carers portfolio.

Mr Merlino said he was confident he could take on those added responsibilities in the short-term.

“I’m here to serve, and for a short period of time I’ve got these (added) portfolios,” he said.

“We’ve got a great team in cabinet with many ministers having a number of roles.”

Mr Merlino refused to speculate on how many other colleagues could be forced to resign in the coming weeks if Mr Donnellan’s resignation set a precedent.

“I’m not going to speculate on what ministers or colleagues should do,” he said.

Transport Minister Jacinta Allan said Mr Donnellan was right to resign from the Andrews ministry on Monday following revelations he paid for party memberships.

“He has done the right thing,” Ms Allan said.

“Luke has made his own decision based on his own circumstances,” she said.

Ms Allan said Mr Donnellan was a highly valued colleague with whom she had worked “very closely” on regional development portfolios.

When asked if any government minister should resign if they were found to have breached party rules, she would not “speculate on hypotheticals” as the IBAC hearings unfolded.

“I’m just not going to comment on proceedings before IBAC. Those proceedings are under way and it would be inappropriate to comment any further,” Ms Allan said.

“I’m just not going to speculate on hypotheticals around what may or might not come out of future IBAC hearings,” she said.

Andrews government minister Martin Pakula said it was “conceivable” that some people in the Labor Party may be concerned about upcoming IBAC proceedings.

But he added that he didn’t believe those feelings were “widespread”.

“I suspect there might be some that are anxious … (but) I have no way of knowing what’s coming next,” he said.

Federal Labor MP Anthony Byrne was grilled on Monday. Picture: Lukas Coch

When asked if any minister or MP should immediately step aside if they were accused of branch stacking, Mr Pakula said: “The circumstances are all going to be individual and different”.

“I’m not going to make sweeping judgments about everyone,” he added.

“These things have been happening across both political parities for decades and I think the circumstances of every situation is quite different.”

Speaking about the resignation of his ministerial colleague Luke Donnellan’s resignation, Mr Pakula said: “Yesterday was a difficult day. Luke Donnellan was a valued colleague and I’m sorry to see him go”.

Environment Minister Lily D’Ambrosio refused to say whether she believed that ministers or MPs named in the inquiry should follow Mr Donnellan and immediately step down.

“I’m not going to get into that. That’s full of hypotheticals. IBAC’s got its job to do; it will do that and I’ll continue to do the work that I’ve been elected and appointed to do,” she said.

“We’re focused on getting the job done and getting ourselves through this pandemic.

“Luke reached a conclusion that he believed was a necessary one but in terms of the reasons behind that, I’m not in a position to make any comments. These matters are certainly for IBAC and they will continue to undertake their inquiries.”

When asked if Ms D’Ambrosio had paid for any memberships for other people, she said: “I’m not going to get into any matters that are related to IBAC. Any comments that I make are not relevant here and as I’ve said, I’m focused on doing my job”.

Shadow Attorney-General Tim Smith slammed the government over the first day of proceedings.

“This Labor government is rotten to the very core,” he said.

When asked if Mr Smith had paid for a person’s membership, he said: “No, half the time I forget to pay my own membership”.

The IBAC inquiry is probing allegations of serious corrupt conduct involving Victorian public officers, including MPs.

It was triggered after secret tape recordings in June 2020 detailed alleged branch stacking activities involving Mr Somyurek and two allies, former ministers Marlene Kairouz and Robin Scott. All three quit within days.

Originally published as Staffer claims Labor culture allowed misuse of public funds as explosive texts exposed at IBAC probe