Dumped Labor boss Kaila Murnain, Sam Dastyari face ICAC grilling
Opposition leader Jodi McKay is sticking by her decision to suspend Kaila Murnain as NSW Labor general secretary despite conceding she is a “broken person” in an “untenable” position.
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
Opposition leader Jodi McKay is sticking by her decision to suspend Kaila Murnain as NSW Labor general secretary despite conceding she is a “broken person” in an “untenable” position.
In an emotional press conference, Ms McKay said Ms Murnain — who is understood to have harboured federal ambitions — would “never” run as a state or federal MP or hold a position again within the party.
“There needs to be discussion on the next general secretary — Kaila will not stay in this role,” Ms McKay said.
“Her position is untenable going forward — there will need to be a new general secretary of the Labor Party.”
“She is suspended on full pay and I support that. She is a broken person. She is 32-years-old and her entire career has come to a grinding halt in the worst possible way.”
MORE ICAC NEWS
LABOR LEADER JODI MCKAY SUSPENDS KAILA MURNAIN
COMMENT: FROM LABOR’S ‘BOSS LADY’ TO HOUSE OF CARDS FALL
ICAC: DEVELOPER’S SUICIDE, $100K DONATION ROCK NSW LABOR
Asked why she would not ask party officers to sack Ms Murnain, Ms McKay said the decision was “entirely up to her”.
“On the advice of the lawyers and the decision I have made she has been suspended until the inquiry reaches its course,” Ms McKay said.
“There are a number of people who still have to give evidence … I want to hear exactly what they have to say before making a further decision.”
Having given evidence to ICAC herself in 2014, Ms McKay said she sympathised with Ms Murnain.
“I’ve been there and I too cried,” she said.
“I want Kaila to know and I want everyone to know it is a tough time being in the witness box and my heart goes out to her.”
Ms McKay she was confident she would still be leader at the next state election in 2023 despite the party being in turmoil.
Asked whether she was worried about losing power given Ms Murnain helped install her as Labor leader, she said: “The decision I have made is based on what is in the best interests of the party, not what is in the best interests of me”.
TOP STORIES
She also praised the ICAC inquiry for having “opened the doors and let the sunlight into our head office”.
It comes after former ALP senator Sam Dastyari, who today bizarrely rode to an ICAC corruption hearing on a share bike in a suit in the rain, has given evidence he told Ms Murnain to immediately get legal advice when they met about possible illegal donations.
Arriving at the CBD offices of the ICAC on the green bike with his own helmet, Mr Dastyari said he felt “a lot of empathy for Kaila at the moment”.
“I can only imagine what a difficult time she’s going through,” he said.
“She’s someone that I’ve cared about very very deeply for many many years and it’s just horrible to see her going through this.”
Earlier Ms Murnain broke down in tears at the commission, when asked about her role not reporting a potentially illegal donation.
Mr Dastyari was grilled about his memory of a meeting with Ms Murnain in September 2016 and why he didn’t report what she had disclosed to him about possible illegal donations.
The hearing heard he was subjected to a compulsory ICAC examination behind closed doors last week and was unaware he would be a witness until then.
ICAC investigators also asked today about his personal relationship with Ms Murnain and he said he did not communicate with her as often as he used to.
“I am no longer engaged in day to day party politics, I’ve moved on from politics. Another reason being Kaila and I drifted apart earlier in the year in what she felt …. we drifted apart on a personal level.”
He recalled picking up a “distressed” Ms Murnain up in his car on 16 September 2016, a Friday night, only weeks after he himself had been demoted from the Federal ALP front bench over his relationship with exiled billionaire Huang Xiangmo.
ICAC heard they spent between 30 minutes to one hour and a half discussing the information that the “accounts for Chinese Friend of Labour … were not an accurate reflection of the events that had taken place and this deeply distressed her”.
He said he was certain there was only one meeting with Ms Murnain and he strongly advised her to go the lawyers.
Earlier evidence has been given by Ms Murnain that she met Mr Dastyari before a visit about 7.18pm to the ALP lawyer.
But WhatsApp messages shown to the commission show a series of calls made by Ms Murnain to Mr Dastyari at 7.18pm and 7.19pm, and it was put to Mr Dastyari that she had already visited the lawyers.
“She didn’t suggest she’d already seen lawyers?” counsel assisting Scott Robertson asked.
“No.”
Earlier Ms Murnain broke down in tears trying to explain her role in the Chinese donation scandal, forcing an ICAC hearing to pause proceedings to allow her to compose herself.
“I should have made different decisions,” she said.
Earlier, counsel assisting Scott Robertson said to Ms Muirnan “you appear to be having difficulty, emotional difficulty” about whether she had told ALP governance officer Julie Sibraa about her earlier conversation with MP Ernest Wong.
“I think it’s everything,” she replied, in tears.
Mr Robertson: “Is there a particular reason why my questions in relation to Ms Sibraa is causing you concern?”
“Not particularly, this whole experience sorry.”
Later she said she should have “made different decisions”.
“You knew you had that this was a matter of significance that you had information suggesting there may be illegality in connection with donations?” Mr Robertson asked.
“Yes.”
Mr Robertson: “You decided to follow the advice of Mr Robertson, namely to keep it quiet.
Ms Murnain “To forget it yes.”
Ms Murnain earlier told the ICAC she only found out she was suspended as leader this morning “after reading it in the media”.
She said she was sent a letter informing her, but had only “briefly read it”.
Asked why she was suspended, she replied “I understand it’s because of these proceedings”.
The corruption hearing heard that Ms Murnain was no longer a close friend of Mr Dastyari after he agreed she should leave her job.
Ms Murnain sensationally gave evidence late yesterday she was told about an $100,000 cash donation — but says she never told anyone after an ALP lawyer allegedly told her to keep quiet.
Ms McKay stepped in Wednesday night, ordering the party to suspend Murnain’s position, saying she was “appalled” by the evidence.
Evidence has already been given that exiled Chinese billionaire Huang Xiangmo allegedly gave $100,000 in cash in an ALDI plastic shopping bag to the ALP in 2015.
Ms Murnain, removed from her position as general secretary at an emergency meeting of the ALP last night, told the ICAC that former MP Ernest Wong told her in 2016 that a donor to the dinner was not the real donor but Xiangmo was.
She immediately rang Mr Dastyari, who advised her to tell the party lawyers.
But Ms Murnain gave evidence that the lawyer Ian Robertson advised her to “forget the conversation happened with Ernest”.
“Ian said to me, ‘Don’t, there is no need to do anything from here. Don’t record this meeting, don’t, don’t put it in your diary. Forget the conversation happened with Ernest and, and I, I won’t be, won’t be billing you for this either. And that was it.”
The hearing continues.
