Labor minsters quizzed by corruption watchdog amid calls for Daniel Andrews to stand down

Key government ministers are being quizzed about a probe into the misuse of taxpayer funds, which insiders fear could have dire consequences for the Labor Party.

Several current and former ministers and dozens of Labor staffers have been interviewed in a major corruption probe into the misuse of public money.

A complaint from Premier Daniel Andrews last year triggered a joint investigation by the Independent Broad-based Anti-corruption Commission and Victoria’s Ombudsman into accusations of branch stacking by dumped minister Adem Somyurek and his allies.

But the Herald Sun understands the joint probe has widened its focus amid concerns of systemic misuse of public money, including the wholesale deployment of taxpayer-funded staff to do Labor Party political work.

At least six current or ­former ministers are believed to have been spoken to.

With public hearings to commence next week, many in the government are fearful it could have devastating consequences for Labor.

It also emerged this week Mr Andrews and his key staff were being investigated by an entirely separate IBAC probe into the government’s dealings with the United Firefighters Union and its chief, Peter Marshall.

Premier Daniel Andrews is facing calls to stand down. Picture: Getty Images

Opposition Leader Matthew Guy said Mr Andrews should stand down, in the same way that NSW Premier Gladys Berejiklian did after being named as the focus of an anti-corruption probe. Mr Guy said that before being elected, Mr Andrews had repeatedly called for those investigated by IBAC to move aside. “Now he’s being investigated and he refuses to stand down,” he said.

“I hope that tells the whole state of Victoria about the state and strength of his integrity.”

In relation to the misuse of public funds probe, there are internal concerns that multiple staffers within the government have blown the lid on a history of party political work done out of ministers’ and MPs’ offices, with no one faction believed to be safe.

Some insiders speculated dozens of people had given evidence and that public hearings due next week would reveal the scale of the problem.

United Firefighters Union chief Peter Marshall. Picture: Julian Smith

Disgruntled former party insiders were believed to have showed up to IBAC to “drop a bucket” – and in doing so, ­triggered a significant widening of the investigation.

A key issue to be explored by IBAC is whether employees working part-time or full-time for members of parliament were engaging in political work, such as branch stacking.

The initial branch-stacking scandal that triggered the corruption probe also set off a ­national takeover of Victorian Labor and an audit of memberships that led to 1700 people being expelled.

A former staffer for former Attorney-General Jill Hennessy was among those to receive a letter from the party during this process.

That person then quit Labor and ceased to work in Ms Hennessy’s electorate office.

Ms Hennessy stood down from her role in cabinet last December, saying at the time she wanted to spend more time with her family.

When announcing the public hearings last week, IBAC said it would “examine allegations that Victorian public officers engaged in corrupt conduct by directing taxpayer-funded ministerial and electorate office staff to perform party political work during times when those staff were being paid to perform ministerial or electorate work”.

Victorian Ombudsman Deborah Glass has previously investigated the Andrews government over the “red shirts” affair and found taxpayer money had been incorrectly used to fund electorate office staff to campaign for Labor.

The party eventually repaid almost $388,000 that was misused in 2014.

In 2019, when the separate fire services probe was ­announced, Mr Andrews said the investigation “doesn’t ­involve me” and he had not been spoken to. But when grilled about the investigation on Wednesday, Mr Andrews insisted he had acted appropriately and could not comment.

The IBAC has confidentiality powers that can prevent people from telling anyone they have been interviewed.

“If you want to know what IBAC is doing and who they’re doing it with, then you need to speak to IBAC,” Mr Andrews said on Wednesday.

“As far as standards and who said what, you can make your own judgments about that. I have behaved appropriately at all times.

“I’m always focused on doing what is the appropriate thing to do. They (IBAC) are the only people who can answer these questions.”

Mr Andrews also defended the state’s fire services reform that moved most paid firefighters into Fire Rescue Victoria and left the CFA as a mostly voluntary organisation.

“The history of this is not so much one of integrity, it’s one of rank politics,” he said.

Originally published as Labor minsters quizzed by corruption watchdog amid calls for Daniel Andrews to stand down