Adem Somyurek scandal: Marlene Kairouz becomes third Victorian Labor minister to quit
Daniel Andrews loses another minister as Marlene Kairouz quits cabinet over the branch-stacking crisis engulfing Labor.
A third Andrews government minister has resigned over branch-stacking allegations engulfing Victorian Labor.
Consumer Affairs, Gaming, Liquor and Suburban Development Minister Marlene Kairouz tendered her resignation from the ministry shortly before Labor’s partyroom meeting on Tuesday morning.
Daniel Andrews said Ms Kairouz had taken “the appropriate course of action” in resigning from the ministry, but refused to say whether he agreed with her assurance to him on Monday that she had “acted appropriately at all times” and her claim in her resignation statement that she was confident the investigation would clear her of wrongdoing.
Ms Kairouz’s resignation follows secret recordings revealed by Nine newspapers on Tuesday which appear to show the now former minister encouraging parliamentary staff to work on branch-stacking activities with dumped powerbroker Adem Somyurek.
In a recording of a conversation which reportedly took place in a conference room in the ministerial offices she shares with Mr Somyurek, Ms Kairouz refers to Labor’s Left faction, of which Mr Andrews is a member, as “all white” branch stackers.
Mr Somyurek in turn jokes the Left is the “Ku Klux Klan” and former upper house MP and Andrews factional ally Gavin Jennings is the “chief klansman”.
Mr Andrews said he had not asked Ms Kairouz to resign. “She made her own decision and I refer you to the statement that she’s issued,” he said. “I haven’t spoken with her today.”
Asked why Ms Kairouz had resigned today, and not yesterday, Mr Andrews said the timing of her resignation was “entirely a matter for her”.
Asked whether he was embarrassed to have lost three cabinet ministers in little more than 24 hours, Mr Andrews said: “that’s not an issue for me”.
“The issue for me is have people done the appropriate thing, and I believe they have,” Mr Andrews said.
“I am focused on doing a job, and those sorts of issues are not a concern to me. What is of a concern though, is that we have these matters appropriately investigated and dealt with, and that we get on and do the important work that we have to do.
“That work includes the national executive of our party facilitating a restructure of our party, some substantial and meaningful reform, so that we can deal with the very serious issues that the party confronts.”
Asked whether the reason Adem Somyurek had been sacked and Ms Kairouz and Mr Scott had only resigned from cabinet was because of the language Mr Somyurek used to describe Minister for Women Gabrielle Williams and young Labor staffers, as opposed to the branch stacking in which they were all allegedly involved, Mr Andrews referred journalists to the former ministers’ statements.
“I don’t think it’s very difficult to see there’s very clear differences in the conduct of Adam Somyurek, and others. It is in some respects unique,” Mr Andrews said.
Andrews ‘confident’ no other ministers are misusing staff, but refuses to give the same guarantee of MPs
Mr Andrews said he was confident that no other ministers were using taxpayer funded staff to further their own political interests.
“I am,” he said.
Asked whether he could say the same of all his MPs, Mr Andrews said Victoria Police and IBAC investigations were underway.
“I’m not going to cut across any work that they may do, and that involves ... making statements that might limit the focus of their investigation,” he said.
Mr Andrews said he did not believe IBAC was investigating branch stacking in the Labor Party prior to the 60 Minutes revelations, despite some Labor sources claiming the secret tapes may have come from law enforcement agencies.
“I don’t believe so. If I was confident that they were dealing with the matter already then I wouldn’t have had the Attorney General refer it (to IBAC),” Mr Andrews said.
“As to what they were doing on any matter, I stress, on any matter, they’re not in the habit of telling anyone, often, the work that they’re doing. That’s the nature of their work.”
New cabinet appointments to be announced later this week
Mr Andrews declined to speculate on whether Ms Kairouz and Mr Scott would be allowed back into his cabinet should they be cleared by the Victoria Police and IBAC investigations.
Asked who would be appointed to replace them, he said: “I’ll make some announcements about that later on in the week.”
On Monday, Mr Andrews announced his parliamentary secretary Danny Pearson would replace Mr Somyurek as minister for small business and local government.
However, Mr Pearson was not sworn in as planned on Monday afternoon, after it was discovered he may be ineligible because the Victorian Constitution does not allow more than 17 minister from the Legislative Assembly.
Now that Lower House MPs Ms Kairouz and Mr Scott have resigned, Mr Pearson will not be constitutionally barred.
Asked whether it was appropriate to appoint Mr Pearson given his wife Nicole Marshall is a Moonee Valley councillor, Mr Andrews said he was confident Mr Pearson “would be able to manage any and all perceived conflicts across any portfolio.”
“He’s an outstanding member of our team. I’ll have more to say about ministerial vacancies and the reallocation of portfolios soon,” Mr Andrews said.
More to say about national executive investigation “soon”
Asked what an ALP national executive investigation into branch stacking in the Victorian Labor Party would look like, Mr Andrews said he was not yet at a point where he could make detailed announcements.
“I have been speaking with Anthony Albanese overnight, and I’ll have more to say about that soon, but there is a significant issue here that we need to deal with, and we will, and that will involve the national executive being involved in delivering a restructure, and then it will be for us here in Victoria, to get on and make the reform that is very, very important,” he said.
“No one should underestimate my resolve to deal with these issues properly, and to make sure that we make really significant reform.”
Kairouz vows to clear her name
In her statement Ms Kairouz said: “It has been an enormous honour to serve the Victorian people across a number of portfolios including Suburban Development, Local Government and Consumer Affairs, Gaming and Liquor Regulation. I no longer want these matters to be a distraction to the government. They have placed enormous pressure on my family and caused them great distress. I look forward to the opportunity to clear my name and am confident any investigative process will do so. I note that these matters do not relate to any allegations of criminality or corruption.”
Ms Kairouz said she would continue to serve her western Melbourne seat of Kororoit “which remains the greatest honour of my life.”
Mr Somyurek was sacked by Daniel Andrews on Monday after being sprung handing over cash and using parliamentary staff to create fake branch members and amass political influence. On Monday night assistant treasurer Robin Scott quit the cabinet after being implicated in the scandal, although he has denied any wrongdoing.
Labor National Executive to meet today
Anthony Albanese and Mr Andrews will support a national intervention on the Victorian branch of the Labor Party, ahead of a meeting of the party’s national executive today.
Sources close to Mr Albanese have confirmed the Opposition Leader and the Victorian Premier — both from the Socialist Left faction — were backing national intervention, which could cause internal ructions with members of the Right.
The form of the intervention will be discussed at a meeting of the national executive. It could involve an audit of the branch that is led by former Victorian premier Steve Bracks.
It could also involve the cancelling of pre-selections in the state, with the process to be handled by national executive rather than rank-and-file ballots.
“We are going to break the business model of the branch stackers,” a Labor source said.
Victorian Right powerbroker Stephen Conroy — a long term enemy of Mr Somyurek — told Sky News this morning pre-selections should be handled by national executive.
Stacking it: federal Labor exposed by tapes
Anti-corruption investigators will probe federal and Victorian Labor figures after powerbrokers plotted secretly for months to destroy Mr Somyurek’s career.
Mr Bracks will lead an inquiry into the state ALP after Mr Somyurek was exposed uttering homophobic and sexist comments and bragging about his power over the state government and party.
The branch-stacking scandal has rocked Labor nationally and exposed Mr Albanese to months and possibly years of infighting.
An embarrassed Mr Albanese on Monday night rejected claims that Mr Somyurek, the most powerful backroom player in Victorian Labor politics, had influence in Canberra. “Well, that’s just not true. He is someone I’ve barely met,’’ the Opposition Leader told ABC’s 7.30.
But Mr Albanese refused to explain why some of the secret recordings appeared to have been made in federal Labor MP Anthony Byrne’s office.
Speaking to Sydney radio 2GB on Tuesday, the Opposition Leader said he was unsure why a hidden camera which captured Mr Somyurek was placed in Mr Bryne’s office, reiterating he only learnt of the branch stacking allegations on Sunday night. “The nature of this activity is that it happens in the shadows, it doesn’t happen up front,” Mr Albanese said.
Mr Byrne dodged questions over his involvement in the surveillance of Mr Somyurek.
Mr Byrne said he had “no comment” over whether he was aware there were recordings of Mr Somyurek in his electorate office in Melbourne.
“It has been referred to two corruption integrity bodies so I’ve got no comment to make,” he said. When asked if law enforcement bodies or a staffer were involved in the recordings, Mr Byrne said: “I have answered your question”.
Shorten backs ‘clean-out’
Former opposition leader Bill Shorten said on Tuesday he was oblivious to the conduct of Victorian factional ally Mr Somyurek.
While Mr Shorten said he was aware people attempted to influence preselections, pointing to Malcolm Turnbull as an example, he said the “shocking” and “reprehensible” behaviour meant that the party would require a “full spring clean of the joint”.
“The party has been trying to clean up branch stacking across Australia and I think - well, we thought it had, but clearly it hadn’t in Victoria in this case. No, most people wouldn’t have a clue of this sort of conduct,” Mr Shorten said,
“You saw by the nature of conduct. You saw by the nature of the video, is it not something which is done in public in front of people.”
Beattie ‘appalled’
Former Queensland Labor Premier Peter Beattie says he’s “appalled” the ALP is still plagued by branch-stacking, 20 years after he was forced to get rid of his Deputy Premier and MPs for the same behaviour.
Mr Beattie was Queensland Premier in 2000 when the Criminal Justice Commission investigated allegations of electoral fraud in the state branch of the Labor Party, he lost his Deputy Premier Jim Elder, backbencher Grant Musgrove and MP Mike Kaiser.
Other Labor party members were kicked out of the party.
Mr Beattie said it was shocking that 20 years after he faced this problem, Mr Andrews is also forced to dismiss Cabinet Ministers for branch-stacking.
“I learnt a hard lesson with this,” Mr Beattie said. “Dan Andrews, he’s showing strong, clear leadership, but the national executive of the Labor party needs to be backing him.”
“I was given the power to override the factions to endorse candidates to replace Elder and others, it was unprecedented power. Dan Andrews needs to be given the same power for a short period of time, to clean up the mess.”
Mr Beattie said the national executive of the Labor party needed to form an ethics committee of respected party elders – such as former premiers Steve Bracks and Bob Carr – to conduct an annual audit to stamp out branch stacking across the party.
“Branch stacking strikes at the heart of our democracy,” he said.
Mr Beattie said he was confident branch stacking did not happen in Queensland Labor anymore.
“I am, because we brought in such tough measures. The Shepherdson Inquiry, and my actions, were like Epsom Salts. It cleared up the Labor party in Queensland. Everyone is terrified of doing it now. It won’t happen in Queensland.”
Federal Labor fallout
The Australian can reveal the covert operation to expose Mr Somyurek has been debated internally in Victorian Labor for many months by the warlord’s factional opponents who were trying to win back some of his numbers.
Mr Somyurek is opposed by federal Labor frontbenchers Kim Carr and Richard Marles but was broadly aligned with former federal leader Bill Shorten.
The Australian is not suggesting either Senator Carr or Mr Marles was involved in the campaign against Mr Somyurek.
Mr Albanese faces instability well into 2021, with IBAC and potentially two police investigations looming into Mr Somyurek’s branch-stacking and how he was destroyed by the sophisticated sting operation.
Mr Somyurek was widely condemned for his attack on a female ministerial colleague and gay ALP supporters. It was alleged that Mr Somyurek had handed over thousands of dollars in cash and used political staffers to stack branches with fake members.
IBAC declined to comment on whether it was aware of the covert recordings and their contents before the referral by the Andrews government, citing legal and operational reasons.
The ALP was on Monday night considering appointing Mr Bracks and former federal Labor frontbencher Jenny Macklin to conduct a review of the Victorian ALP, although the positions were being hotly debated.
Mr Somyurek was recorded speaking at length about internal party matters, including with a staff member of federal Labor MP Anthony Byrne.
Senior Victorian party figures backing Mr Somyurek, who was in charge of the so-called Mods faction, are blaming Canberra-based MPs for moving against him.
Mr Somyurek has been the party’s factional heavyweight in charge of the Victorian ALP after building an alliance between the Right and some disaffected Left unions. Mr Shorten is aligned with the AWU.
Senior ALP sources said the media sting had been discussed internally “for months’’ before it was aired on Channel 9.
Mr Andrews savaged Mr Somyurek, declaring: “He is not worthy of an opportunity to resign. He was sacked.’’
Mr Scott said: “To the extent that these matters relate to my conduct, I look forward to the opportunity to clear my name. I am very confident that the investigative process will do so.’’
The 60 Minutes report revealed recordings of Mr Somyurek describing Minister for Women Gabrielle Williams as a “stupid bitch”. Young staffers were “real little f..king slimy little f..kers, little passive-aggressive f..king gay kids”.
Mr Andrews said: “Mr Somyurek’s comments are derogatory and offensive and are unacceptable. His threatening language towards Gabrielle Williams, the Minister for Women, is a disgrace and cannot be tolerated.’’
Attorney-General Jill Hennessy referred the allegations against Mr Somyurek to Victoria Police and IBAC for investigation.
Mr Somyurek has asked the AFP to investigate the recordings.
Mr Albanese, a factional opponent of Mr Somyurek, was critical of branch-stacking. “What we saw last night on 60 Minutes was someone seeking power as and in itself,” the federal Labor leader said. “A corruption of the political process. It has no place in the Australian Labor Party. The national executive committee will … take immediate action against Adem Somyurek, and from that point in time he will not be a member of the Australian Labor Party.”
Labor Party national president Wayne Swan said he wanted Mr Somyurek banned from rejoining the ALP. “The conduct of Mr Somyurek is reprehensible and at odds with everything the ALP stands for,” Mr Swan said.
Mr Somyurek claimed he had resigned from the cabinet.
“It follows publication of numerous personal and private conversations between myself and a long-term friend and factional ally of mine,” he said.
“It is clear that I was taped and surveilled in a federal electorate office without my knowledge and that this material was published without my knowledge of its existence or my consent. I will be taking steps to seek a police investigation into these matters. With respect to allegations made around memberships of the party, I reject those and will be providing a rigorous defence during any party process.”
60 Minutes said Mr Somyurek wanted to remove Victorian Labor MP Pauline Richards and to force Ms Williams out of the ministry. According to the program, he wanted to remove federal Labor MPs Rob Mitchell, Julian Hill and Joanne Ryan.
Rudd likens factional fighting to ‘cancer’
Former Prime Minister Kevin Rudd labelled the factional fighting at the heart of the industrial-scale branch stacking scandal in Victoria as a “cancer” that needs to be removed from the Labor Party.
Mr Rudd said he first met Mr Somyurek over a decade ago, but was shocked at the level of influence the former Victorian small business minister had accumulated across the factional network and Victoria.
“He was a minor party function back then. Obviously, as I said the other night, Frankenstein’s monster has turned into Frankenstein,” Mr Rudd told Sunrise on Seven.
“This is a cancer for the Labor Party and needs to be extracted. That is why it needs to be acted on decisively, not just in this case but to prevent it re-occurring anywhere.”
However, Mr Rudd said the problem was endemic across the political spectrum and needed to be confronted. “As long as you have faceless men, they are usually men, seeking to exercise power secretly rather than openly and transparent like having a discussion on a program like this for what the party stands for,” Mr Rudd said. “If you have any darkness in either mainstream political party, it is a cancer in our democracy. It is to be rooted out in both sides of politics”
Additional reporting: Max Maddison
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