IBAC to scan gambling fund handouts to ministers’ allies

The corruption watchdog is probing whether taxpayer dollars granted to community groups by the Andrews government were misused.

Tens of thousands of taxpayer dollars were distributed from responsible-gambling programs to multicultural community groups with ties to Labor ministers.

Party insiders say the grants are on the radar of the Independent Broad-based Anti-corruption Commission, ahead of five weeks of public hearings, which start on Monday.

The Herald Sun can reveal four associations with Labor links benefited from the Victorian Responsible Gambling Foundation scheme after it was unveiled by then gaming minister Marlene Kairouz in 2017.

In three years, $140,000 was given to groups connected to the factional power base of Ms Kairouz and former ministerial colleague Adem Somyurek.

The pair departed Premier Daniel Andrews’ cabinet last year amid a branch-stacking scandal investigated by Victoria’s corruption watchdog.

IBAC has also been probing whether “public money granted to community associations by the Victorian government had been misused to fund party political activities or for other improper purposes”.

Premier Daniel Andrews with then gaming minister Marlene Kairouz.

The public hearings will consider “whether the ministers or other public officers involved in granting the funds have dishonestly performed their functions as public officers or have knowingly or recklessly breached public trust”.

The Somali Australian Council Of Victoria and the Cambodian Association of Victoria were among the beneficiaries of grants signed off by former multicultural affairs minister Robin Scott, an ally of Ms Kairouz and Mr Somyurek who was also forced out of cabinet last year.

The Herald Sun can now reveal both groups also benefited from a scheme which Ms Kairouz said would “bring down the barriers to getting help” for people from culturally and linguistically diverse communities who were “more likely to experience harm from gambling”.

The secretary of SACOV — which received three grants ­totalling $62,500 — is Hussein Haraco, who was an electorate officer for Mr Somyurek and Labor’s Heidelberg branch president.

Leaked emails show Labor meetings were held at SACOV’s offices, and the branch grew rapidly as scores of local Somali community members joined the party.

The CAV — which received $43,013 over three years — is headed by Youhorn Chea, the brother-in-law of ex-Labor MP Hong Lim.

Adem Somyurek speaks in Victorian Parliament. Picture: David Geraghty

In 2016, attendees at a function to celebrate Mr Lim’s 20 years of parliamentary service paid for their seats directly to the CAV. Invoices from the ­association were signed by Mr Lim’s electorate officer and used his parliamentary PO Box address.

The other groups to benefit were the Migrant Resource Centre North West Region, which received two grants totalling $20,000, and the Ethnic Community Broadcasting Association of Victoria, with two grants worth $15,000.

Veteran Labor numbers man Hakki Suleyman holds senior roles in both organisations. His daughter, Natalie is a state Labor MP, and a former factional rival of Ms Kairouz, but Mr Suleyman’s allegiances shifted as Mr Somyurek gained the ascendancy years ago.

Other insiders maintained Mr Suleyman was not a close ally of Mr Somyurek.

They also said the Migrant Resource Centre and Ethnic Community Broadcasting Association had relied on State and Federal government grants for decades.

“Any accusations levelled against Mr. Suleyman’s voluntary role is designed to politicise the IBAC investigation,” one source said.

It is not suggested that the grant recipients did anything untoward in receiving the money, or that the grants were improper, only that they have been raised with IBAC.

Victorian Premier Daniel Andrews, and Marlene Kairouz Picture: AAP

Ms Kairouz declined to comment on Thursday. The Victorian Responsible Gambling Foundation said a “rigorous procurement process” applied to all grants. The foundation’s spokeswoman said ministerial approval was required for payments of more than $3m.

Mr Andrews said he had “demonstrated my willingness to co-operate with integrity agencies”, noting that his referral to IBAC had kickstarted its investigation.

After the 2018 election, Mr Scott was replaced by Richard Wynne in the multicultural affairs portfolio, and the government launched a review of the Victorian Multicultural Commission amid internal turmoil about its functions.

The Herald Sun understands the review found there had been major reforms to the process for awarding multicultural grants over the previous year, and that it was being properly managed.

But reviewer Warren McCann, a veteran public servant, did hear concerns that the process lacked transparency.

Some pushed for the commission to take charge of handing out grants again, but Mr McCann concluded it was appropriate for the minister to remain the decision-maker.

Originally published as IBAC to scan gambling fund handouts to ministers’ allies