Morrison adviser was ‘out of order’ says independent candidate for Reid Natalie Baini

Independent candidate for Reid, Natalie Baini, has accused Scott Morrison’s principal private secretary of behaving in a ‘sexually inappropriate manner’.

Natalie Baini, former vice president for the NSW Liberal's Reid branch, outside the Fair Work Commission in Sydney. Picture: Britta Campion

The independent candidate for Reid, Natalie Baini, has accused Scott Morrison’s principal private secretary of behaving in a “very sexually inappropriate manner” when she complained to him about the Liberal preselection process for the Sydney seat at the last federal election.

The former Liberal branch vice-president’s allegations against Yaron Finkelstein – one of the Prime Minister’s most trusted advisers – were raised in a witness statement tendered to the Fair Work Commission.

Ms Baini claims in her statement that former Liberal cabinet minister and pub baron Craig Laundy took steps to “block” her from running in his former seat of Reid after she broke off a two-year extramarital relationship with him, having learned he was not separated from his wife.

According to her statement, when Mr Finkelstein – a former close friend – became aware of her concerns, he asked to visit her at her home to discuss the matter.

Ms Baini alleges she was then subjected to his “very sexually inappropriate” behaviour.

Mr Finkelstein categorically denies the allegations.

He told The Australian he had known Ms Baini and her sister for more than 25 years and rejected “any suggestion of inappropriate behaviour at any time.”

“I understand her disappointment at not being preselected but sadly, these claims are now part of a politically motivated campaign that has already targeted a former and sitting MP,” he said.

The claims were aired in an unfair dismissal case launched against Labor senator Kristina Keneally by a former junior staffer, Pierce Field, who sent text messages to and called Mr Laundy in October demanding he apologise to Ms Baini.

Among matters detailed in her witness statement, Ms Baini canvassed the alleged behaviour of Mr Finkelstein.

“I have known Finkelstein since the 1990s. We were once close friends. While at my home, Finkelstein behaved in a very sexually inappropriate manner,” she states.

“I took issue with this and made it clear in the weeks following that our friendship would not resume until I had received an apology or explanation.

“Finkelstein asked to see me again to explain his conduct in person, only on his second visit to my home behaved in an even more sexually inappropriate way.

“I have terminated that friendship.”

The Australian is not suggesting any wrongdoing by Mr Finkelstein, only that untested allegations have been made in the course of legal proceedings.

Ms Baini’s witness statement was obtained by The Australian after an application to the Fair Work Commission.

When it was tendered, Commissioner Ian Cambridge remarked that some of the material contained within it was “clearly not relevant” but helped “paint the picture” of what led to Mr Field contacting Mr Laundy.

Ms Baini alleges in her statement that she raised the incidents with Mr Finkelstein and her relationship with Mr Laundy with NSW Liberal Party state director Chris Stone but didn’t receive a response to her preselection concerns for more than three years.

“The state director did not ­assist me when I approached him to discuss a preselection in Reid and did not even respond to my follow up queries for 3.5 years,” she claims in her statement.

“I only received a response when I escalated the matter, along with a serious matter involving the Prime Minister’s principal private secretary, Yaron Finkelstein, to the party executive in October 2021.”

Ms Baini claims that when Mr Stone finally replied to her emails, he said the Liberal Party could not act on the Finkelstein ­allegations “as he was no longer a member of the party”. She said this admission “seemed extraordinary, given his level of influence over internal party preselections.”

Ms Baini claims in her witness statement that her relationship with Mr Laundy prevented her from being considered – a situation that particularly impacted her as she had “been serving the community of Reid, and the party, since I was a child”.

“Several active members of the party, both locally and statewide, had asked me to run for Reid, but without Laundy’s personal endorsement, I was blocked from even having the discussion with the relevant senior party operatives,” she writes in her statement.

Ms Baini is now running as an independent in the seat.

At the March hearing, Mr Field said he felt compelled to speak to Mr Laundy in October last year because he couldn’t overlook his friend’s allegations regarding “coercive control and Mr Finkelstein harassing Ms Baini at her home”.

He said Mr Laundy had “effectively sought to destroy Ms Baini’s life via abuses of privilege and power”. The former Liberal MP denies the claim.

Commissioner Cambridge has asked the parties to return to the commission to continue the hearing on April 27.