Labor senator Kim Carr spent more than $117,000 with printing firm embroiled in IBAC probe
Victorian Labor powerbroker Kim Carr sent more than $117,000 in taxpayers’ money to the printing firm at the centre of an alleged “cash-for-stacks” scheme.
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Victorian Labor powerbroker Kim Carr sent more than $117,000 in taxpayers’ money to the printing firm at the centre of an alleged “cash-for-stacks” scheme.
The Herald Sun can reveal Senator Carr — the shadow industry and innovation minister — used F&M Printing for 54 jobs over the last decade, including two invoices paid after the business was linked to the Labor printing rort.
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Victoria’s anti-corruption watchdog is continuing to probe the scheme allegedly run out of the electorate office of former state Labor MP Khalil Eideh, a close factional ally of Senator Carr.
The Herald Sun understands Independent Broad-based Anti-corruption Commission investigations have raised questions about Senator Carr’s relationship with Mr Eideh and his former office manager Robert Mammarella.
Mr Mammarella, his son Justin and two other people have been charged with dishonesty offences by IBAC.
The watchdog is still digging into the rort, exposed by the Herald Sun in 2017, in which hundreds of thousands of taxpayer dollars were allegedly siphoned from MPs’ printing budgets to pay for ALP memberships.
Senator Carr — who will likely be a federal minister next month if Labor wins the election — is understood to have been angry that Mr Eideh was under investigation and has been critical in private of the anti-corruption probe.
A spokesman for Senator Carr said last night that he had not been contacted by any state or federal agency about F&M Printing.
“(Senator Carr) isn’t aware of an outcome of any investigation. He supports serious concerns being investigated,” the spokesman said.
The only other federal MP to have used F&M Printing since 2008 was Opposition Leader Bill Shorten, who sent four jobs totalling $4400 to the firm in 2010 and 2011.
A list of Senator Carr’s spending, obtained by the Herald Sun, shows he used the firm every year between 2008 and 2018 to print business cards, stationery, letterheads and other items.
The biggest job was a $10,230 order for 100,000 personalised letterhead pages in 2010.
Senator Carr’s office also spent almost $28,000 on three jobs dated June 19 in 2015.
Special Minister of State Mathias Cormann told the Senate that the Department of Finance and the Independent Parliamentary Expenses Authority could not comment on whether MPs’ spending with F&M Printing was being reviewed.
“It would not be appropriate for Finance or IPEA to comment on any allegations that may or may not be under consideration at any point in time in order to avoid possible prejudice to the impartial adjudication of a particular case,” Senator Cormann said.
Senator Carr’s spokesman said the office had always complied with strict federal guidelines on printing materials.
“This printer has been used just twice in nearly two years, for minor work,” the spokesman said.
“On every occasion, the full quantity of printing was provided and fully acquitted. We ensured the price quoted was fair and reasonable.”
The Herald Sun asked IBAC yesterday whether any elements of the Operation Naxos investigation into the alleged “cash-for-stacks” scheme had been referred to other agencies.
An IBAC spokesman said: “As this matter is before the Court, we are unable to comment further.”
Mr Shorten has previously said that his office also complied with all rules for printing, and that he expected the matter to be fully investigated.
Mr Eideh has denied any wrongdoing. He retired from state parliament at November’s state election after 12 years.
tom.minear@news.com.au
@tminear
PRINTERS STILL RUNNING DURING IBAC INVESTIGATION
LABOR senator Kim Carr continued using a printing firm at the centre of an anti-corruption probe more than a year after whistleblowers went public about rorting allegations.
The Herald Sun revealed in September 2017 that F&M Printing in Keilor East was embroiled in claims that electorate officers for state MPs were creating false invoices to claim payments from parliament for printing work that was never done.
The printing firms allegedly in on the scam took a small cut and sent the rest of the cash back to MPs’ offices, with the money allegedly used to pay for Labor memberships for supporters.
A state parliamentary probe raised concerns about as much as $200,000 worth of invoices, prompting the Independent Broad-based Anti-corruption Commission to launch its own investigation in 2017.
New documents show Senator Carr used F&M Printing twice last year, purchasing 500 personalised letterhead pages for $363 on June 28, then another 750 “printed items” for $1034 on October 22.
The spending came as IBAC tracked Labor figures connected to former state MP Khalil Eideh — who counted Senator Carr as one of his closest allies.
Court documents show that early last year, Mr Eideh’s former office manager Robert Mammarella, his son Justin Mammarella and colleagues Jeffrey O’Donnell and Angela Scarpaci allegedly agreed to attempt to pervert the course of justice.
Over four months, they allegedly agreed to tell IBAC that they had not used taxpayer-funded staff, stationery and office equipment for party work, including Justin Mammarella’s bid to become Labor’s candidate for Melton for last year’s state election.
He won the preselection race but dropped out shortly before November’s poll for “family reasons”.
IBAC announced in December that Operation Naxos, set up to probe the alleged “cash-for-stacks” scheme, had charged the Mammarella father and son, Mr O’Donnell and Ms Scarpaci with a series of dishonesty offences.
They were accused of lying to IBAC about how 713 stamped envelopes addressed to Melton Labor members were to be used, claiming the mail-out was designed to raise awareness of autism.
While no charges were laid in relation to the original printing rort, IBAC urged “anyone with credible information” to come forward.
The Melbourne Magistrates’ Court heard in January that IBAC investigators needed six weeks to transcribe all of the secret recordings they had obtained of the key players.
When the case returned to court last week, it emerged that even more time was needed.
The next hearing will be held in May.
HOW THE CASH-FOR-STACKS SCANDAL UNFOLDED
SEPTEMBER 5, 2017
The Herald Sun reveals bombshell claims from Labor whistleblowers alleging hundreds of thousands of taxpayer dollars were siphoned from MPs’ printing budgets to pay for party memberships.
SEPTEMBER 6
Labor upper house MP Khalil Eideh’s electorate office and Keilor East firm F&M Printing are linked to the allegations. Parliament launches an investigation into the claims.
SEPTEMBER 14
The Independent Broad-based Anti-corruption Commission is asked to investigate the scandal after invoices worth more than $200,000 are analysed in the parliamentary inquiry. The Herald Sun reveals federal Labor leader Bill Shorten and Kim Carr also used F&M Printing.
OCTOBER 17
Eideh stands down as Legislative Council deputy president as investigations continue. He had previously defended himself over the allegations, but said he would retire at the 2018 election.
OCTOBER 20
The Herald Sun reveals IBAC investigators raided F&M Printing and the Cairnlea home of Western Metropolitan electorate office manager Robert Mammarella, who worked for Eideh. Phones, computers, files and flash drives are seized.
JULY 25, 2018
Eideh quits as Legislative Council deputy president.
OCTOBER 25, 2018
The Herald Sun reveals charges are imminent after a series of closed IBAC hearings to question those allegedly involved. Robert Mammarella’s son Justin withdraws as Labor’s candidate for Melton.
DECEMBER 13, 2018
Robert Mammarella, Justin Mammarella, Angela Scarpaci and Jeffrey O’Donnell are charged with a string of offences by IBAC.
JANUARY 9, 2019
The four charged by IBAC face Melbourne Magistrates’ Court for the first time. Charge sheets show they are accused of lying to IBAC about how 713 stamped envelopes addressed to Melton Labor members were to be used.
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