Labor senator Kim Carr spent more than $117,000 with printing firm embroiled in IBAC probe
Labor powerbroker Kim Carr spent more than $117,000 in taxpayers’ money with a printing firm entangled in an alleged “cash for stacks” rort, it can be revealed.
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Labor powerbroker Kim Carr spent more than $117,000 in taxpayers’ money with a printing firm entangled in an alleged rort.
Senator Carr, the shadow industry and innovation minister, has used F&M Printing for 54 jobs over the past decade, including two since it was raided in 2017.
LABOR FIGURES FACE COURT OVER IBAC CHARGES
EX-LABOR CANDIDATE CHARGED IN ANTI-CORRUPTION PROBE
LABOR MEMBERS RAIDED OVER ALLEGED PRINTING RORT
Victoria’s anti-corruption watchdog is probing claims taxpayers were billed hundreds of thousands of dollars for fake printing jobs for MPs.
It is alleged the cash was used to pay for ALP memberships to boost the powerbases of Senator Carr’s factional mates, in an operation run out of the electorate office of one of those allies, former state Labor MP Khalil Eideh.
The Independent Broad-based Anti-corruption Commission investigation is understood to have raised questions about Senator Carr’s relationship with Mr Eideh and Mr Eideh’s office manager, Robert Mammarella.
Mr Mammarella, his son Justin and two other people have been charged with dishonesty offences by IBAC.
No charges have been laid against Mr Eideh or Senator Carr.
The Herald Sun has now obtained a list of Senator Carr’s spending with F&M Printing, revealing 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. Almost $28,000 was spent on three jobs on June 19, 2015.
Senator Carr’s spokesman said his office had always complied with strict guidelines on printing materials.
But the senator — who is likely to be a federal minister if Labor wins next month’s election — is understood to have been angry that Mr Eideh was under investigation.
Senator Carr is also said to have been critical in private of the IBAC probe.
The only other office of a federal MP to have used F&M Printing since 2008 was that of Opposition Leader Bill Shorten, which sent four jobs totalling $4400 to the East Keilor firm in 2010 and 2011.
Special Minister of State Mathias Cormann told the Senate the Finance Department and the Independent Parliamentary Expenses Authority couldn’t say 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 … in order to avoid possible prejudice to the impartial adjudication of a particular case,” he said.
A spokesman for Senator Carr said tonight 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.”
He added: “This printer has been used just twice in nearly two years, for minor work. 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 on Monday whether any elements of its investigation, Operation Naxos, 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, who retired at last November’s state election after 12 years in parliament, has denied any wrongdoing.
CARR KEPT RETURNING TO RAIDED PRINTERS
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.
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, buying 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 a close ally.
Court documents show 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 they had not used taxpayer-funded staff, stationery and office equipment for party work, including Justin Mammarella’s bid to be Labor’s candidate for Melton at last year’s state poll.
He won the preselection race but dropped out shortly before the November election for “family reasons”.
IBAC announced in December its Operation Naxos, set up to probe the alleged “cash-for-stacks” scheme, had charged both Mammarellas, Mr O’Donnell and Ms Scarpaci with 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.
The Melbourne Magistrates’ Court heard in January 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 even more time was needed.
The next hearing will be held in May.
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