Labor rules broken as members have fees paid without their knowledge via alleged printing rort

Victorians have had Labor Party memberships renewed in their name for years without their knowledge, in what insiders allege is a branch-stacking operation bankrolled by a printing rort.

Victorians’ Labor Party memberships were renewed for years without their knowledge in what insiders allege is a branch-stacking operation bankrolled by a printing rort.

A Herald Sun investigation has identified a group of Labor Party members in Melbourne’s northwest whose fees were paid in cash without their having signed renewal forms.

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This would breach party rules, raising the prospect their signatures may have been forged.

Last year, after the Herald Sun exposed allegations that taxpayers were billed hundreds of thousands of dollars for fake printing jobs for MPs, the mysterious renewal payments stopped.

It has been alleged that a “cash-for-stacks” scheme was run out of the office of former state MP Khalil Eideh, a close ally of Labor powerbroker Senator Kim Carr, and that the money was used to pay for party memberships that boosted factional support.

Labor powerbroker Kim Carr. Picture: James Ross/AAP

The allegations are still being investigated by Victoria’s Independent Broad-based Anti-corruption Commission.

Leaked documents show that in the wake of the revelations, scores of Labor members — whose fees were paid in cash — dropped membership of party branches.

One man who joined the Deer Park branch in 2015 said he hadn’t renewed his membership since, though Labor records show it was paid in cash up until last May.

“When I get those letters, I put them in the bin,” he said.

A woman who joined in 2015 said she “wouldn’t have a clue” why her membership had been paid until last year.

Labor files show the Deer Park branch lost about 60 members last year, more than a quarter of the total. Most, joining in 2013-16, paid cash.

Justin Mammarella outside Melbourne Magistrates’ Court. Picture: AAP

A party source said the “cash-for-stacks” scheme was an “epic failure of governance” and called on Labor leaders to “put an end to this dodgy practice as the underbelly in Victoria grows”.

Records show more than 80 per cent of Deer Park members had been paying fees in cash.

The branch had been controlled by Justin Mammarella, who used his factional power to win preselection as Labor’s candidate for the seat of Melton before quitting on the eve of last year’s state election for “family reasons”.

Mr Mammarella, his fath­er, Robert, and two others were later charged with dishonesty offences by IBAC investigators probing the printing rort allegations.

Owners of Keilor East firm, F&M Printing, are members of Labor’s Niddrie branch . Picture: Nicole Garmston

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One woman said she joined the party in 2016 through a relative who was a friend of Justin Mammarella.

She said it was “a one-time thing” and was surprised to learn her membership had been renewed until last year.

Owners of F&M Printing — the Keilor East firm at the centre of the rorting allegations — are members of Labor’s Niddrie branch, which last year lost about 40 members, about a third of the total, most of whom had also been renewing in cash.

One Niddrie member said his membership card kept “arriving in the mail” for several years after he had stopped paying for it.

Labor state secretary Sam Rae did not respond to Herald Sun questions.

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