Payout to disgraced ALP boss Kaila Murnain ‘obscene’

Senior NSW Labor figures are furious Kaila Murnain will receive a $250k payout, plus legal costs.

Former NSW Labor general secretary Kaila Murnain. Picture: Adam Taylor

Senior NSW Labor figures are furious general secretary Kaila Murnain will receive a payout believe­d to be worth $250,000 as severance cover and a further $450,000 to pay for legal costs related­ to the ICAC investigation that ended her career.

In confirming her resignation, which was announced on Thursday, Ms Murnain attacked a “nasty culture” of sexism in the Labor Party.

However, she said she was sorry she had let people down.

The amount paid to Ms Murnain was less than what The Australian understands she sought — $600,000 or two years’ pay, as well as legal fees.

Ms Murnain was forced to admit to the NSW Independent Commission Against Corruption that she sat on an allegation that a $100,000 illegal donation was made by Chinese developer and suspected agent of foreign influence Huang Xiangmo to the ALP prior to the 2015 state election.

Ms Murnain’s resignation paves the way for Rail Tram and Bus Union official Bob Nanva to become party general secretary after his endorsement by the Right faction on Monday night.

The ALP confirmed yesterday Mr Nanva would not be appointed until a review ordered by federal leader Anthony Albanese into the general secretary’s position was completed next month.

Ms Murnain’s golden handshake was not welcomed by former­ party secretary John Della Bosca, who said those who negotiated the deal had “failed in their fiduciary duty to the ALP and its members” and that the payout was “obscene”.

“The notion that she should have provision for her legal fees flies in the face of long-accepted party practice,” Mr Della Bosca said. “The actions that led to her admissions in the ICAC are a betraya­l of the trust of the party’s rank-and-file, who are entitled to expect more from the organis­ational leadership of the party.

“The party should not pay her legal fees. I can think of no case where an incumbent ALP minister, MP or party official has ­admitted­ wrongdoing and had the party pay legal fees … This is obscene and offends against the values of the ALP, ­particularly in light of the ICAC revelations.”

Ms Murnain said in a statement posted on Twitter: “I am sad to leave the party office. Many wonderful party members have supported me in my 11 years in the party office. I joined the Labor Party in 2000 when I was a high school kid growing up on a farm in Narrabri … In February 2016 I became general secretary. I was the first woman to fill this role. I was 29 years old.

“The circumstances leading up to my election … were horrendous. I believe it is inargu­able that our party has never fully grappled with the nasty culture of sexism which women face in politics.”

Part of those circumstances involved her predecessor, Jamie Clements, who is accused of receivin­g the bag of cash from Mr Xiangmo, quitting over sexual harassment allegations.

Ms Murnain finished: “I dedicated my entire life to Labor. I am devastated to leave. I’m sorry to have let you down.”

Labor Party president Mark Lennon said in the statement announcing Ms Murnain’s resignation that the terms of the separation agreement were confid­ential but consisted of her basic legal entitlements.

Mr Lennon said the party was actively considering seeking the recovery of all its costs related to the ICAC inquiry, including the sum payable to Ms Murnain, under its insurance policies and from its previous lawyers.