Branch stacking inquiry: Victorian Labor ‘morally corrosive’ for politicians

Former Victorian government minister Marlene Kairouz will be questioned in closed hearings before anti-corruption inquiry, despite there being significant public interest in her answers.

Victorian Premier Daniel Andrews with Marlene Kairouz. Picture: AAP

Former Victorian government minister Marlene Kairouz will give in secret evidence to an anti-corruption inquiry, despite there being significant public interest in her answers.

Counsel assisting the Independent Broadbased anti-Corruption Commission Chris Carr SC said on Wednesday that the anti-corruption watchdog had limited powers to compel witnesses to appear before public hearings.

He said there was “significant public interest” in her answers but the inquiry had received credible concerns for Ms Kairouz’ wellbeing.

It came after Ms Kairouz’ former electorate office manager Kirsten Psaila was at times reduced to tears during cross examination but remained loyal to the former Consumer Affairs Minister during a public hearing on Wednesday.

“She’s [Kairouz] a standup MP in the local community and she does what can for the area,” she said.

Ms Kairouz quit the ministry in June 2020 after branch stacking allegations emerged and has since September been on a leave of absence following the unexpected death of her sister. She recently failed in a Supreme Court legal challenge against her expulsion from the ALP.

Mr Carr said people like Ms Psaila were acting as “cogs in the machine” by engaging in branch stacking activities on behalf of powerbrokers.

When he asked Ms Psaila if Labor’s factional machine was fundamentally corrosive and left politicians without a moral compass, she said “yep”.

When asked if Ms Kairouz was part of the “corrosive factional machinery”, Ms Psaila said “they all have”.

Ms Psaila said Ms Kairouz had transferred her tens of thousands of dollars to renew memberships, including $14,700 in 2015 and $18,300 in 2016, to maintain faction numbers.

She said Ms Kairouz had inherited about 400 members late Victorian Labor politician George Seitz, who is Ms Psaila’s former boss, with the members divvied up between “captains” in the office.

Former electorate officer Kirsten Psaila gives evidence before IBAC.

Ms Psaila admitted she filled in ballots on behalf of members but denied having forged signatures or having suspicions that some in her office was doing so.

“I definitely not would have forged a signature,” she said.

When told there was evidence of signature forgery, Ms Psaila said she was too trusting to a fault.

At one point Ms Psaila became tearful at Wednesday‘s hearing, saying she had worked very hard for her community and had once had aspirations to run for an upper house spot in the Victorian Parliament.

“I do a lot for the local community,” she said.

She accepted her conduct was “seriously wrong” and said she become involved in ALP because of political idealism, inspired by her father who was a social worker and a community advocate.

“Every Christmas we’d have family sitting around the table we didn‘t even know,” she said.

Ms Psaila said she would often work late or through lunch hours to ensure factional work did not detract from her office duties.