Corruption watchdog raids Labor members’ homes over printing rort allegations

VICTORIA’S corruption watchdog has raided the Melbourne homes of Labor members linked to the “cash-for-stacks” printing scandal allegations.

IBAC officers examined F & M printing in Keilor East in connection to the alleged Labor printing budget rort. Picture: Nicole Garmston

• Matthew Johnston: IBAC raids dispel any doubts about seriousness of cash-for-stacks allegations
• Editorial: IBAC spot fire could spread out of control for Labor

ANTI-corruption investigators have raided the Melbourne homes of two Labor Party members linked to allegations of a “cash-for-stacks” printing scandal.

The independent Broad-based Anti-corruption Commission seized mobile phones, flash drives, computers, files, and other evidence during early morning raids this week.

The dramatic escalation of the probe into the alleged scandal has rocked Labor Party insiders, and sources say there must have been enough serious concerns about corrupt conduct for search and seizure powers to be granted to investigators.

LABOR WHISTLEBLOWERS SAY TAXPAYER MONEY SIPHONED FOR PARTY MEMBERSHIPS

SECOND PRINTER IN LABOR CASH FOR STACKS RORT CLAIMS PROBE

PARLIAMENT TO CALL IN IBAC OVER RORTS PROBE

PRINTING COMPANY SAYS IT KNOCKED BACK DODGY ‘PROPOSAL’ BY EX-VICTORIAN LABOR MP

A key and USB stick is bagged and taken away as evidence. Picture: Nicole Garmston

An IBAC officer takes evidence from a property in Kelior East. Picture: Nicole Garmston

The identity of the officers have been obscured at the request of IBAC. Picture: Nicole Garmston

The Herald Sun revealed the cash-for-stacks bombshell in September, when whistleblowers claimed money was being siphoned from Labor MPs’ electorate printing budgets for branch stacking in federal electorates.

One of the state MPs implicated was upper house member Khalil Eideh, who has denied any knowledge of rorting but has stepped down as Legislative Council deputy president while the probe is ongoing.

Evidence is taken by IBAC officers during a raid in Kelior East. Picture: Nicole Garmston

Three mobile phones are bagged as evidence. Picture: Nicole Garmston

A computer hard drive taken away as evidence. Picture: Nicole Garmston

This week, the Cairnlea home of Western Metropolitan electorate office manager Robert Mammarella — who works for Mr Eideh — was searched for six hours on Monday morning.

The firm named as central to the allegations, F and M Printing in Keilor East, was examined on Thursday morning.
The IBAC declined to comment, saying it could not discuss an open investigation.

The latest development has spooked members of the ALP, who fear the speed of the inquiry indicated Victoria’s corruption watchdog held serious concerns public misconduct and fraud.

One Labor member said “it does not look good” and believed the raids would further smear the Andrews Government following a series of rorting scandals.

There is also growing concern about the implications for federal MPs who have used F and M Printing, if any wrongdoing is found to have occurred.

Under the alleged scam, involving parliamentary electorate budgets, hundreds of bogus ALP memberships were bankrolled.
Invoices were created for printing jobs worth thousands of dollars, but the jobs were never completed.

IBAC examined F & M printing in Keilor East on Thursday. Picture: Nicole Garmston

Evidence is taken away by an IBAC officer. Picture: Nicole Garmston

Whistleblowers say cash was returned to MP offices, minus a small cut for the printer, with memberships paid for in the seats of Scullin, Gorton, Calwell and Maribyrnong.

In State Parliament last month, Opposition Leader Matthew Guy grilled Daniel Andrews over allegations of rorting in the office of the premier’s “hand-picked” Legislative Council deputy president.

Mr Eideh unexpectedly quit his highly coveted upper house position this week, within 24 hours of investigators attending the home of his electorate office manager.

In a statement given to parliament Mr Eideh said he could not risk bringing the Victorian Legislative Council into disrepute.

“As you know matters relating to my electoral office have recently been referred to IBAC,” he told parliament.|

Robert Mammarella outside the Electoral Office of Khalil Eideh in Cairnlea. Picture: Tony Gough

Robert Mammarella and Khalil Eideh after meeting in a kebab store. Picture: David Smith

EMBATTLED LABOR MP HOLDS SECRET KEBAB SHOP MEETING WITH OFFICE MANAGER

“As I have previously stated I have not knowingly done anything that would lead to an adverse finding against me and I continue to profess my innocence of any wrongdoing.”

His decision to step down was another big blow for the Andrews Government, after it lost its other two highest parliamentary office bearers to rorts earlier this year.
Former Victorian speaker Telmo Languiller and his deputy, Don Nardella, quit after it was revealed they had claimed lucrative country residence allowances while representing outer suburban electorates.

The pair are currently being investigated by Victoria Police over their use of the allowance, and have agreed to pay back a total of almost $140,000.

The latest rort also threatens to engulf Federal MPs with Opposition Leader Bill Shorten and Labor powerbroker Senator Kim Carr admitting they have used the printing firm raided by IBAC.
Both have said their printing jobs were aboveboard.

Mr Mammarella could not be contacted by the Herald Sun following this week’s search.

But he has previously denied any knowledge of a scam, blaming messy internal preselection battles with factional opponents, who he says are running a smear campaign against his son Justin Mammarella.
Former Melton mayor Justin Mammarella is running for preselection in Mr Nardella’s seat of Melton.

Premier Daniel Andrews Picture: Lukas Coch

Owners of the F and M Printing Flavio and Nancy Monforte declined to comment on the raids but have also previously said they have done nothing wrong, and that they carried out all work for which they were paid.

Opposition Leader Matthew Guy said the escalation of the investigation was concerning for Victorians.

“Daniel Andrews and his government has a lot of explaining to do,” Mr Guy said.

“The Premier owes Victorian taxpayers an explanation as to whether any criminal activity has occurred and whether he or his office were aware.”

[e-mail]