Daniel Andrews refuses to comment on leaked Ibac report into Victorian Labor party

Victoria’s premier, Daniel Andrews, has refused to comment on a leaked report from the anti-corruption watchdog that reportedly found the state branch of the Labor party condoned the misuse of public funds.

The Independent Broad-based Anti-Corruption Commission (Ibac) and the Victorian Ombudsman have been investigating allegations that former minister Adem Somyurek enlisted the help of staff for branch-stacking work, as part of Operation Watts.

Somyurek has conceded involvement in branch-stacking and that his staff did political work. But he maintains these activities were widespread across politics and permitted under the legislation governing the use of electorate officers.

The practice, which involves paying for other people’s Labor party memberships, was allegedly done to boost his moderate faction’s influence and ensure preferred candidates were preselected.

It is not illegal, but Labor party rules prohibit payments for other people’s memberships.

Ibac and the ombudsman are investigating whether Victorian MPs engaged in corrupt conduct by directing ministerial or electorate office staff – paid for with public funds – to perform such work.

According to the Age, Ibac’s draft report is said to have found the “unethical practices” exposed in its investigation were not confined to the moderate faction of the party and it is “highly likely” the misuse of publicly funded staff and employment of family members and factional allies was widespread.

Ibac reportedly concluded such practices had been “approved or condoned by party leadership for decades”.

The draft report reportedly says 26 witnesses, including Andrews, were interviewed by Ibac in private while Somyurek and six others faced public hearings. The premier is said to have told Ibac that significant cultural reform was required within the party.

At a press conference on Thursday, Andrews refused to answer questions about the leaked report.

“It is grossly inappropriate for me to be talking about these matters before a final report has been tabled,” Andrews said.

“Until that time, my position on this will not change.”

Andrews said several steps had been taken to reform Victorian Labor, including to place the party under administration and suspend voting rights for rank and file members until 2023, to allow for a comprehensive audit of every member.

“But of course, we’re always ready to do more, to take further steps,” he said.

Somyurek was dumped from cabinet and quit the Labor party before it moved to expelled him, while his allies Marlene Kairouz and Robin Scott resigned from the frontbench after their faction was the subject of an investigation by the Age and 60 Minutes in June 2020. Kairouz and Scott have not be preselected to represent the party at the November state election.

Immediately after the 2020 reports, Andrews wrote to the national executive to place to Victorian branch under administration and the matter was referred to Ibac.

He said there was a “significant problem” in the branch and apologised to Labor “true believers”.

“I apologise for your pain and guarantee you that when this reform work is finished, not only will your voice be heard but it will be louder than it has ever been,” Andrews said at the time.

Late last year, Ibac commissioner Robert Redlich QC and ombudsman Deborah Glass wrote to Victorian political parties to inform them they were considering whether there should be a ban on the employment of close relatives by MPs, and if the staffing allocation and electorate office budgets should be reduced.

They said parliamentary reforms in 2019 that prohibited electorate officers from doing “party-specific activity” at work – after Labor’s so-called red shirts scandal – “have not deterred” MPs.

Ibac must give accused parties an opportunity to respond to the allegations in the report before it is tabled to parliament.

Somyurek took to Twitter on Thursday to accuse Ibac of leaking the report.

“IBACs drop of its report before those mentioned in report have a chance to respond is a denial of procedural fairness,” he said in a post.

A spokesperson for Ibac said as a matter of practice, it did not comment on investigations before it.

The opposition leader, Matthew Guy, said he had not seen the draft report but described its reported contents as “concerning”. He said the Coalition’s integrity policy, to be released soon, would include additional funding for Victoria’s probity bodies.