Labor MP Anthony Byrne admits to branch stacking

Federal Labor MP Anthony Byrne has admitted to involvement in branch stacking and paying for party memberships under questioning at bombshell corruption hearings.

Federal MP Anthony Byrne.

Federal Labor MP Anthony Byrne has admitted to involvement in branch stacking and paying for memberships in the first morning of bombshell corruption hearings.

On Monday morning, counsel assisting the commission Chris Carr SC asked Mr Byrne whether he himself had an involvement in branch stacking

“I certainly have,” he said.

Mr Byrne said he had paid for some Labor memberships and estimated he may have spent as much as $2000 in some years.

He said he was also aware of Adem Somyurek and current Cabinet minister Luke Donnellan paying for memberships.

IBAC has been grilling the Holt MP on the prevalence of branch stacking among elected officials.

This included questions about a “southeastern alliance” among right-aligned Labor figures and a peace agreement with the Socialist Left faction to reduce stacking in the area.

In opening statements, Mr Carr referenced the red shirts affair and the misuse of electorate resources for political purposes.

He said IBAC received evidence early in 2020 to suggest there continued to be “premeditated and systematic rorting of taxpayer resources”.

Federal MP Anthony Byrne.

Mr Byrne, whose Cranbourne West office features in the secretly recorded tapes that triggered the probe, will give evidence for the entire day.

Hearings are being held as part of a 16-month joint investigation by IBAC and Victorian Ombudsman Deborah Glass into branch-stacking allegations against former Andrews government minister Adem Somyurek.

The rest of the week will be spent interviewing staffers Ellen Schreiber and Adam Sullivan, who are both believed to have worked in Mr Byrne’s office and to have interacted with Mr Somyurek.

The joint investigation by the Independent Broad-based Anti-Corruption Commission and the Victorian Ombudsman is looking at whether taxpayer resources were used for party political activities, such as branch-stacking.

This includes the use of staff hired in electorate and ministerial offices and the awarding of grants to community organisations.

It was launched after allegations of branch stacking — involving Mr Somyurek, his allies and taxpayer-funded workers — were aired in leaked videos.

Mr Somyurek was kicked out of Cabinet and the Labor Party, but former ministers Marlene Kairouz and Robin Scott stood down from their roles while they awaited the results of the investigation.

Former Labor MP Adem Somyurek will also front the IBAC hearings. Picture: Tony Gough

It comes as a Labor whistleblower alleged cash raised at fundraisers organised by Mr Byrne was stored in his electorate office and used to pay for ALP memberships.

The whistleblower alleges that cash raised at fundraisers held at a restaurant in Dandenong was kept in a cupboard in the office of Mr Byrne’s electorate staff.

“The money in cheques went into branch accounts and the cash would be used mostly for the memberships,” the whistleblower said.

“It wasn’t given to the ALP.”

The cash from the fundraisers was allegedly managed by a member of Mr Byrne’s staff.

The staffer “would take it at the end of the night and it was kept in a cupboard”, the whistleblower claimed. On one occasion, a staffer allegedly directed the whistleblower to take cash to Labor head office to pay for ALP renewals.

“Anthony was aware of it. He’d walk around the office when it was being done,” they said.

The Herald Sun has not been able to verify the allegations but believes they will be examined as part of the coming IBAC hearings.

Flyers, seen by the Herald Sun, advertised fundraisers that were held at the Afghan Rahmi restaurant in Dandenong. At one dinner in 2014, hosted by Mr Byrne and state MPs Luke Donnellan and then ALP candidate Tim Richardson, the guest speaker was then opposition Treasury spokesman Chris Bowen.

A fundraiser in 2013 addressed by former NSW senator Sam Dastyari was billed as “supporting south eastern Labor campaigns”.

Another fundraiser at the restaurant in April 2016 for the benefit of “South East Labor” was addressed by the current Labor deputy leader Richard Marles.

The Herald Sun is not suggesting any of the guest speakers thought the dinners were anything other than fundraisers for the ALP.

Premier Daniel Andrews was on Sunday asked whether he had been called to give evidence at the IBAC hearings, due to start on Monday.

“If you want to know who has been called to any of IBAC’s hearings then you should speak to IBAC,” he said.

Mr Byrne and the staffer did not respond to questions from the Herald Sun.