NSW Liberal Party told of conduct claims ‘a year ago’

The NSW Liberal Party was told about allegations of ‘very inappropriate sexual’ behaviour surrounding a senior member of Scott Morrison’s office more than a year ago, emails show.

Natalie Baini, independent candidate for the battleground Sydney seat of Reid.

The NSW Liberal Party was told about allegations of “very ­in­appropriate sexual” behaviour surrounding a senior member of Scott Morrison’s office more than a year ago, emails show, amid an unfair dismissal case that has thrown the spotlight on the 2019 preselection for the Sydney seat of Reid.

As revealed by The Australian, independent candidate for Reid and former Liberal Party member Natalie Baini accused the Prime Minister’s principal private secretary of behaving in a “sexually inappropriate manner” in a witness statement tendered at the Fair Work Commission as part of a case brought against Labor senator Kristina Keneally.

Ms Baini’s complaint against Yaron Finkelstein had been previously raised in emails from Ms Baini to the NSW Liberal Party in December 2020 and March 2021.

The emails to NSW Liberals state director Chris Stone, seen by The Australian, received no response for more than a year.

Ms Baini also alleges in her witness statement that she ­informed Mr Stone in May 2018 of another complaint - that being her decision to break-off a relationship with former Liberal cabinet minister Craig Laundy after learning he had not separated from his wife - had cost her an opportunity to run in the seat.

The Australian does not suggest any wrongdoing by Mr Laundy or Mr Finkelstein, only that untested and uncorroborated allegations have been made in the course of legal proceedings, which both men categorically deny.

Mr Finkelstein on Monday told The Australian he had known Ms Baini for more than 25 years and rejected any suggestion of inappropriate behaviour at any time.

He said the claims were now part “of a politically motivated campaign that has ­already ­targeted a former and sitting MP.”

The allegations were ­described by Fair Work Commissioner Ian Cambridge as “clearly not relevant” to the case other than they helped “paint the picture” of what led Ms Baini’s friend and former Labor staffer Pierce Field to contact Mr Laundy in October 2021 – a move that contributed to his sacking by Senator Keneally.

A spokesman for the NSW Liberal Party told The Australian nominations for preselection were opened twice ahead of the 2019 federal poll and Ms Baini chose not to nominate on either occasion.

“Had she nominated, normal processes would have been followed,” he said.

The Australian understands senior office holders of the Reid branch – as Ms Baini was at the time – would ordinarily be consulted about nominating as part of the endorsement process.

Ms Baini received a response from Mr Stone on behalf of the NSW division after she forwarded her correspondence to all members of the state executive in October last year.

“While the division is concerned to ensure that members act appropriately in their dealings with each other, allegations unrelated to the organised activities of the division or against persons who are not members fall outside of the scope of the code of conduct,” Mr Stone’s response says.

“The nature of your complaint against Mr Laundy for which you seek action by the division is not clear. You assert that he misled you in what was otherwise a consensual relationship. With respect that is not a matter calling for the involvement of the division, and falls outside the scope of the code of conduct.”

The party found that none of her concerns was covered by the party’s code of conduct and the Finkelstein allegation fell outside its remit because he was not a member of the Liberal Party.

“While I do not quite understand the specifics of your complaints concerning Mr Finkelstein, he has not been a member of the division for some years,” Mr Stone said.

“As such, the division has no ability to investigate your complaint, nor take disciplinary action if warranted.”

Two weeks after Ms Baini received Mr Stone’s letter, her friend and former Labor staffer, Pierce Field, texted and called Mr Laundy and demanded he apologise for the alleged “mess” he had made.

At a March hearing, Ms Baini admitted she had casually suggested to Mr Field that it would be helpful to her if he contacted Mr Laundy.

Mr Field has previously told the commission his decision to contact Mr Laundy was not connected to his role as a Labor staffer in any way and he hoped the “private” conversation would bring a resolution that allowed Ms Baini “to get on with her life”.

A spokesman for Mr Laundy has previously told The Australian the claims made by Mr Field were “not only utterly untrue, they are bizarre”.

Questioned about its handling of the emails, the NSW Liberal spokesman said Ms Baini asked for the matters she raised to be kept confidential “and they have been treated as such”.

“She communicated her satisfaction at the time, both with the undertaking and the approach,” the spokesman said. “Following the receipt of further information from her two years later, she was provided with a detailed response – some of which you have cited.”

On Monday night, the heads of the Liberal Party’s Strathfield women’s branch withdrew their support for Reid’s Liberal MP, Fiona Martin, citing “a conflict of interest” because of their friendship with Ms Baini.

In a statement, seen by The Australian,Strathfield women’s branch president Liana Ross and secretary Vivian Hodgson wrote: “We don’t want party members thinking we are ­double-crossing the Liberal Party in Reid as a result of our friendship with Natalie.”