Ex-ALP boss Kaila Murnain accused of crying ‘fake tears’
Former Labor Party boss Kaila Murnain has broken down in the witness box at ICAC after she was accused of throwing the party’s lawyer “under a bus” to “cover your backside”.
NSW
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Dumped Labor Party boss Kaila Murnain was dramatically accused of crying “fake tears” in the ICAC witness box on Thursday and destroying the reputation” of an ALP lawyer to “cover your backside”.
She broke down after being accused of throwing ALP lawyer Ian Robertson “under a bus” with her evidence the lawyer told her to keep her mouth shut about a possible illegal donation.
She denied making up a “concocted” story, saying “I trusted Ian”.
Grilled by Tony McInerney, SC, acting on behalf of Mr Robertson, a distraught Ms Murnain told the corruption hearing that “everything about this is true”.
Mr McInerney said to her: “It’s not the worst thing in the world from your perspective to throw him (Mr Robertson) under the bus, correct?
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Ms Murnain began crying and said: “No, This is incredibly difficult, Ian is someone I respect a great deal.”
Mr McInerney then said: “They are fake tears, aren’t they Ms Murnain? They are not real?”
Ms Murnain answered that “everything about this is true and real”.
ICAC is investigating an alleged ALP “straw donor” racket at a 12 March 2015 Chinatown dinner. It is also inquiring into a $100,000 Aldi bag plastic bag cash donation allegedly made by property developer Chinese billionaire Huang Xiangmo.
Mr McInerney accused Ms Murnain, who lost her job last week over the scandal, of not giving truthful evidence and “constructing a concoction” based around text messages.
“Your evidence is a complete fabrication, isn’t it?” he asked.
“No it is not,” Ms Murnain replied.
“You are here to colloquially cover your own backside and destroy Mr Robertson’s reputation, aren’t you?
“No,” she said.
According to Ms Murnain, she told the ALP lawyer Mr Robertson immediately about discovering the illegal donation at a Friday night meeting on 16 September 2016.
But she alleges he instructed her not tell anyone, not to make a note in her diary or take notes and that he would not bill her either.
“I wouldn’t lie about this,” Ms Murnain replied. “This matter is incredibly serious.”
It was put to her that it was “absurd” that a lawyer of Mr Robertson’s experience and stature would give such advice.
“You just thought he’d pull the pin on the grenade clutch it to his chest, and blow himself up, is that what you’re saying?”
“No.”
Ms Murnain was also quizzed about her phone records during the course of that day.
Questions were asked about another political storm brewing that day involving western Sydney MP Nick Lalich and calls she made to then NSW ALP leader Luke Foley’s office.
Mr Foley had attended the infamous March 2015 Chinese Friends of Labor dinner, along with Mr Bill Shorten, but there is no suggestion they knew of any “straw donor” scheme.
Earlier in the day Ms Murnain admitted she had kept secret from ICAC investigators a clandestine meeting behind state parliament, where she had discovered crucial information about the allegedly illegal donation.
It was only after she had finished her first closed door hearing with the corruption body on July 29 this year that she then came forward with the extra information.
She revealed the meeting at a second ICAC compulsory closed doors hearing on August 20.
“I was incredibly nervous … I haven’t ever been to a court let alone a commission before,” she said.
She conceded she had “not done the right thing” by hiding details of the WhatsApp Hospital Road meeting with then MP Ernest Wong.
She said she came forward of her own accord after checking her phone records and that she “wanted to do the right thing”.
Her public evidence is that a “sweating” and “agitated” Mr Wong told her at it was in fact Mr Xiangmo, since banned from Australia, who had given the ALP the $100,000 cash donation.
Counsel assisting Scott Robertson put it to her she was “less than forthcoming” during her first interview.
“I was very focused on the questions surrounding the dinner and hadn’t prepared myself for coming to a place like this,” Ms Murnain said.
Mr Robertson: “Where you concerned these matters would come out in the public inquiry anyway and were seeking to get ahead of it?”
“No,” she replied.
Huang Xiangmo last night issued a statement saying he had “nothing to do” with the $100,000 cash donation to the ALP.
While the ICAC has heard claims that Mr Huang made the donation in a plastic Aldi bag, Mr Huang said all his donations had been “in accordance” with Australian laws and “openly and honestly” made.
“I am not the source of the alleged donation,” his statement, published on Australian Chinese media website Jinriaozhou, said.
“I do not know any of the alleged donors of the sum or any of the ‘straw donors’ as referred to in recent reports, nor have I ever had any contact with them.”
Mr Huang has a lawyer present at ICAC hearings, but has refused to be interviewed by investigators. He is believed to be residing in Hong Kong after his visa was revoked on the advice of Australian security agencies.
Ms Murnain’s cross-examination continues on Friday.
