Dear Members of the Tribunal, 

 
RE: Kaila Murnain 
1. We  write  seeking  the  expulsion  of  former  General  Secretary  Kaila  Murnain  from  NSW  Labor, 
on  the  grounds  that  she  has  brought  the  Party  into  disrepute,  among  other  things  by  being 
investigated by a public authority for improper conduct under contrary to Rule A.33(a) and (i). 
 
2. This  submission  is  in  three  parts.  Part  A  sets  out  the  undisputed  facts  concerning  Murnain’s 
conduct.  Part  B  explains  why  this  means  Murnain  has  brought  the  Party  into  disrepute.  Part C 
explains  why  immediate  expulsion,  rather  than  expulsion  following  the  Independent 
Commission  Against  Corruption  (​ICAC​)’s  Operation  Aero’s  report,  is  the  only  appropriate 
remedy. 
 
A. Murnain’s Conduct 
3. The  following  summary  of  the  facts  is  based  on  Murnain’s  sworn  evidence,  under  penalty  of 
perjury, before ICAC Operation Aero. We understand that it is not disputed.1 
 
4. ICAC Operation Aero is an investigation into:2 
whether,  from  January  2015,  officials  of  the  Australian  Labor  Party  (NSW  Branch) 
(NSW  Labor),  members  of  Chinese  Friends  of  Labor,  political  donors  and  others  have 
entered  into  or  carried  out  a  scheme  to  circumvent  prohibitions  or  requirements under 
Part  6  of  the  Election  Funding,  Expenditure  and  Disclosures  Act  1981  (NSW)  relating 
to political donations. 
 
5. In  January 2015, Murnain was Assistant Secretary of NSW Labor.3 By the time of the Operation 
Aero hearings in August 2019, she had become General Secretary of NSW Labor.4 
 
6. On  or  about  6  April  2015,  Murnain  became  aware  of  a  cash  donation  of  $100,000  to  NSW 
Labor  and  Country  Labor.5 On 16 September 2016, Murnain aware became from Ernest Wong, 
a  member  of  the  NSW  Legislative  Council,  that this donation was not donated by the disclosed 
donors,  but  by  Huang  Xiangmo,  who  she  knew  to  be  a  Chinese  property  developer6  and 
therefore  a  prohibited  donor  for  the  purposes  of  NSW  law.7  Following  discussions with Wong 
and  former  General  Secretary  Sam  Dastyari,8  Murnain  chose to keep the illegal donation secret, 

1
For the avoidance of doubt, this charge does not accuse Murnain of any further misconduct beyond what she has already 
admitted to in her sworn evidence. 
2
ICAC Operation Aero, Opening Statement of Counsel Assisting the Commission [1], 26 August 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/26-08-2019%20Operation%20Aero%20-%20Opening%20Statement
.pdf.aspx​. 
3
ICAC Operation Aero, Transcript 205T, 28 August 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/28-08-2019%20Operation%20Aero%20transcript%20pp.%2000202-
00249%20from%202.00pm%20to%204.23pm.pdf.aspx​. 
4
Ibid, 204T. 
5
Ibid, 222T. 
6
Ibid, 230T-231T. 
7
Ibid, 232T. 
8
Ibid, 238T. 
1 
 rather  than  disclose  it  to  the  NSW  Electoral  Commission  as  required  by  NSW law.9 She did so 
even  when  the  NSW  Electoral  Commission  opened  an  investigation  into  the  donation.10  She 
agreed  that,  when  first  compulsorily  examined by ICAC, she was ‘less than forthcoming’ in that 
she  did  not  tell  ICAC  about  her  meetings  with  Wong  or  Dastyari,  even  though  she  was  legally 
required to answer ICAC’s questions.11 
 
7. In  fact,  the  illegal  donation  remained  secret  until  it was sensationally revealed in ICAC hearings 
on  28  August  2019.  By  the  following  day,  Murnain  had  been  suspended as General Secretary.12 
She  resigned  on  17  October  2019.13  This  makes  her  the  third  consecutive  General  Secretary to 
leave  public  life  in  under  a  cloud.  Her  immediate  predecessor,  Jamie  Clements,  resigned  on  14 
January  2013  in  the  midst  of  a  sexual  harassment  scandal.14  His  predecessor,  Sam  Dastyari, 
resigned  from  the  Senate  on  11  December  201715  after  media  reports  that  he  told  Huang  the 
latter’s phone was likely being tapped by Australian intelligence agencies.16 
 
B. Murnain’s Conduct Brought the Party into Disrepute 
8. Rule A.33(a) of the NSW Labor Rules 2018 provides: 
Any member can charge another member with: 
● bringing the Party into disrepute; 
 
9. Rule A.33(i) further provides: 
Without  limiting  the  generality  of  subsection  (a),  ‘bringing the Party into disrepute’ may 
include  members  being  investigated  by  a  public  authority  for  improper  conduct,  where 
that investigation is bringing the Party into disrepute. 
 

9
Ibid, 244T; ICAC Operation Aero, Transcript 258T-259T, 29 August 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/29-08-2019%20Operation%20Aero%20transcript%20pp.%2000250-
00299%20from%2010.00am%20to%2012.43pm.pdf.aspx​. 
10
ICAC Operation Aero, Transcript 260T-267T, 29 August 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/28-08-2019%20Operation%20Aero%20transcript%20pp.%2000202-
00249%20from%202.00pm%20to%204.23pm.pdf.aspx​. 
11
ICAC Operation Aero, Transcript 688T, 5 September 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/05-09-2019%20Operation%20Aero%20transcript%20pp.%2000674-
00709%20from%2010.15am%20to%2012.48pm.pdf.aspx​. 
12
Ibid, 252T. 
13
Christopher Knaus, ‘Outgoing NSW Labor boss denounces 'nasty culture of sexism' after formally resigning’, ​The 
Guardian​, 17 October 2019, available at 
https://www.theguardian.com/australia-news/2019/oct/17/outgoing-nsw-labor-boss-denounces-nasty-culture-of-sexism-af
ter-formally-resigning​. 
14
Daniel Hurst, ‘Jamie Clements quits as NSW Labor boss after harassment allegations’, ​The Guardian​, 14 January 2016, 
available at 
https://www.theguardian.com/australia-news/2016/jan/14/jamie-clements-quits-as-nsw-labor-boss-after-harassment-allega
tions​. 
15
Amy Remeikis, ‘Sam Dastyari quits as Labor senator over China connections’, ​The Guardian​, 11 December 2017, available 
at ​https://www.theguardian.com/australia-news/2017/dec/12/sam-dastyari-quits-labor-senator-china-connections​. 
16
Katharine Murphy, ‘Sam Dastyari's loyalty to Australia questioned after he tipped off Chinese donor’, ​The Guardian​, 29 
November 2017, available at 
https://www.theguardian.com/australia-news/2017/nov/29/sam-dastyaris-loyalty-to-australia-questioned-after-he-tipped-o
ff-chinese-donor​. For the avoidance of doubt, we are agnostic as to whether the allegations against Clements or Dastyari are 
true. 
2 
 10. Murnain’s  conduct  is  being  investigated  by  ICAC,  a  public  authority.  The  relevant  questions, 
then, are twofold. 
a. First,  is  it  proper  conduct  for  the  General  Secretary  of  NSW  Labor  to  engage  in  what 
effectively  amounts  to  a  conspiracy  of  silence  to  conceal  illegal  donations  from  the 
NSW Electoral Commission? 
b. Second, is the investigation into Murnain’s conduct bringing the Party into disrepute? 
 
a.  It  cannot  be  proper  conduct  for  the  General  Secretary  of  NSW  Labor  to  engage  in  a  conspiracy  of 
silence to conceal illegal donations from the NSW Electoral Commission. 
11. Rule  A.33(i)  concerns  ‘improper’  conduct.  Our  submission  is  that  the  rule  is  engaged  by  any 
conduct  a  reasonable  member  of  the  public  would  consider  improper,  whether  or  not  it  is 
criminal,17 for three reasons. 
 
12. First,  the  language  of  Rule  A.33(i)  supports  this  interpretation.  The  choice  of  the  broad  word 
‘improper’,  rather  than  ‘illegal’  or  ‘criminal’,  is  deliberate:  there  is  no  express  requirement  that 
the conduct be unlawful or a crime. 
 
13. Second,  the  context  of  Rule  A.33(i)  supports  this  interpretation.  The  improper  conduct  is  a 
subset  of  conduct  ‘bringing  the  Party  into  disrepute’,  which  could  be  done  by  legal  or  illegal 
conduct. 
 
14. Third,  the purpose of Rule A.33(i) supports this interpretation. The Rules do not aim to create a 
parallel  criminal  justice  system.  They  aim  to  govern  NSW  Labor  as  a  political  entity  which 
supports  candidates  for  public  office.  The  charging  provisions’ purpose is in part to protect the 
Party’s  reputation  by  excluding  those  whose  continued  membership  could  damage  it,  which  as 
above could be done by legal or illegal conduct. 
 
15. A reasonable member of the public would consider Murnain’s participation in this conspiracy of 
silence improper, for two reasons. 
 
16. First,  Murnain’s  conduct  effectively  amounts  to  a  conspiracy  of  silence,  along  with  Wong  and 
Dastyari,  with  the  purpose  and  effect  of  concealing  a  criminal  offence.  Based  on  their 
discussions,  Murnain  decided  to  keep  the  evidence  of  the  illegal  donation  secret  rather  than 
reporting  it  to  the  proper  authorities.  This  is  all  the  more  improper,  because  as  the  General 
Secretary  she  was  the  person  ultimately  responsible  for  NSW  Labor’s  reporting  to  the  NSW 
Electoral  Commission,  and  as  a  witness  before  ICAC,  she  was  legally  required  to  answer 
questions about the donation truthfully. 
 
17. Second,  the  crime  she  chose  to  conceal  strikes  at  the  heart  of  NSW  democracy.  The  relevant 
NSW  law  aims  to  further  public  trust  in  the  political  system,  by  preventing  the  appearance  of 
influence-buying  by  property  developers  or  interference  by  foreigners  in  the  NSW  politics. 
Murnain’s  conduct  was  all  the  more  improper,  because  as  General  Secretary  members  placed 
17
See also ​Powell & Carr,​ NSW Labor Review Tribunal [20]. For the avoidance of doubt, we are agnostic as to whether the 
conduct described above amounts to a criminal offence. 
3 
 her  in  a  position  of  trust  to  run  NSW  Labor  in  a  way  consistent  with  the  Rules’  principles  of 
democracy and integrity. 
 
b. Murnain’s conduct brings the Party into disrepute. 
18. The  Review  Tribunal  has  found  that  the  relevant  question  is  whether  the  conduct  brings  the 
party  into  disrepute  in  the  eye of the public generally.18 Four factors indicate Murnain’s conduct 
does so. 
 
19. First,  under  penalty  of  perjury  before  ICAC  Operation  Aero,  Murnain  herself  agreed  that  her 
conduct  ‘cast  an  unfair  shadow  over  the  entire  party  and  its  members’,  including  that  it 
‘compromised  the  ALP…  because  it  opened  them  up  to suggestions of… the ALP engaging in 
acts of illegality’.19 
 
20. Second,  Murnain’s  conduct  attracted  considerable  adverse  media  coverage  over  the  course  of 
months,  including  from  the  ABC,20  SBS,21  the  Sydney  Morning  Herald,  the  Australian,22  the 
Australian Financial Review,23 and the Guardian.24 
 
21. Third,  the  Administrative  Committee’s  response  to  Murnain’s conduct, to immediately suspend 
her  and  later require her resignation, indicates that Murnain’s ongoing association with the Party 
continued to damage its reputation and urgently needed to be severed. 
 
22. Fourth,  Murnain’s  conduct  needs  to  be  examined  in  context.  Due  to  the  activities  of disgraced 
former  NSW  Right  powerbroker  Eddie  Obeid,  NSW  Labor  has  become  synonymous  with 
corruption:  a  Google  search  for  ‘NSW  Labor  corruption’  turns  up  approximately  765,000 
results  (the  first  of  which  is  ‘NSW  Labor  in  corruption  scandal,  again’).  Murnain  is  the  third 
consecutive  General  Secretary  to  leave  public  life  in  under  a  cloud, in a scandal which taps into 
pre-existing  public  concerns  about property developer donations’ corrupting influence on NSW 

18
​Powell & Carr​, NSW Labor Review Tribunal [20]. 
19
​ICAC Operation Aero, Transcript 828T, 6 September 2019, available at 
https://www.icac.nsw.gov.au/ArticleDocuments/902/06-09-2019%20Operation%20Aero%20transcript%20pp.%2000819-
00834%20from%202.00pm%20to%202.46pm.pdf.aspx​. 
20
Selby Stewart and Kathleen Calderwood, ‘NSW Labor boss Kaila Murnain resigns amid ICAC inquiry’, ​ABC News Online​, 
17 October 2019, available at 
https://www.abc.net.au/news/2019-10-17/nsw-labor-boss-kaila-murnane-resigns-amid-corruption-inquiry/11611266​. 
21
‘Ex-NSW Labor boss Kaila Murnain concedes she was “less than forthcoming” to ICAC’, ​SBS News Online​, 5 September 
2019, available at 
https://www.sbs.com.au/news/ex-nsw-labor-boss-kaila-murnain-concedes-she-was-less-than-forthcoming-to-icac​. 
22
Andrew Clennell, ‘ICAC-tainted Labor boss Kaila Murnain in bid to stay on’, ​The Australian,​ 15 October 2019, available at 
https://www.theaustralian.com.au/nation/politics/icactainted-labor-boss-kaila-murnain-in-bid-to-stay-on/news-story/f1a0
d7fa89abbd3750e8fe8e273f5877​. 
23
Angus Grigg, ‘ICAC evidence leads to suspension of NSW ALP boss’, ​The Australian Financial Review​, 28 August 2019, 
available at 
https://www.afr.com/politics/alp-boss-kaila-murnain-suspended-after-sensational-evidence-at-icac-20190828-p52lnh​. 
24
Christopher Knaus, ‘Kaila Murnain tells Icac her silence over unlawful donations cast “shadow” over Labor, ​The Guardian,​  
6 September 2019, available at 
https://www.theguardian.com/australia-news/2019/sep/06/kaila-murnain-tells-icac-her-silence-over-unlawful-donations-ca
st-shadow-over-labor​.
4 
 politics,  and  foreign  interference  in  democracy.  This  context  has  exacerbated  the  effect  of  her 
conduct on the Party’s reputation. 
 
C. Immediate Expulsion is the Only Appropriate Remedy 
23. The  remedy sought is Murnain’s immediate expulsion from NSW Labor. This Part explains why 
expulsion  is  the  appropriate  remedy,  and  why  it  should  be  granted  immediately,  rather  than 
delayed until (for example) ICAC releases its report into Operation Aero. 
 
a. Expulsion is the only appropriate remedy. 
24. First,  for  all  the  reasons  set  out above, Murnain’s conduct is objectively serious, amounting to a 
conspiracy  of  silence  to  conceal  illegal  donations  by  a  Chinese property developer, in breach of 
the  trust  that  members  place  in  her.  Murnain  had  numerous  opportunities  to  come  clean  and 
repent  of  her  conduct.  She  could  have  immediately  reported  the  illegal  donation,  properly 
answered  the  NSW  Electoral Commission’s enquiries about the donation, or given forthcoming 
evidence when first examined by ICAC. She chose to do none of these things. 
 
25. Second,  expelling  Murnain,  and  clearly  demonstrating  this  conduct  is  completely  unacceptable 
in  NSW  Labor,  is  the  only  way  to  begin  properly  repairing  NSW  Labor’s  reputation.  A  mere 
reprimand  or  suspension  would  not  signal  a  clean  break  with  the  scandals  of  the 
Dastyari/Clements/Murnain era. 
 
b. The remedy should be granted immediately, rather than awaiting the ICAC Operation Aero report. 
26. First,  the  need to expel Murnain is urgent. For as long as she remains a member of NSW Labor, 
the  illegal  donation  scandal  remains  a  running  sore  in  NSW  Labor’s  side,  as  reflected  by 
ongoing  adverse  media  coverage.  Expulsion  allows  NSW  Labor  to  make a clean break with the 
scandals  of  the  Dastyari/Clements/Murnain  era,  voluntarily,  without  being  shamed  into  action 
by  Operation  Aero’s  report.  By  contrast,  allowing  Murnain  to  remain  a  member  threatens  to 
continue  the  appearance  that  NSW  Labor,  like  Murnain  herself,  tolerates  illegal  and  corrupt 
conduct and protects wrongdoers. 
 
27. Second,  there  is  simply  no  need  to  wait  for  ICAC’s  findings. There is no meaningful dispute as 
to  the  facts  for  ICAC  to  resolve:  the  summary  of  facts  set  out  above  reflects  Murnain’s  sworn 
evidence,  under  penalty  of  perjury.  Whatever  else  ICAC  may  find,  and  however  the  criminal 
prosecuting  authorities  and  courts  may  subsequently  deal  with  Murnain,  these  facts themselves 
establish conduct requiring Murnain’s expulsion. 
 
28. In  the  end,  the  question  the  Tribunal  has  to  decide  is  simple:  is  it  acceptable  for  the  General 
Secretary  of  NSW  Labor  to  engage  in  a  conspiracy  of  silence  to  conceal  illegal  donations from 
the  NSW  Electoral  Commission?  The  Administrative  Committee  and  the  public  have  already 
decided their answers to this question. We submit the Tribunal’s answer should be the same. 
 
29. We  would  be  grateful  for  the  opportunity  to  make  further  submissions in reply to any made by 
Murnain, and for the chance to address any questions the Tribunal may have. 
 

5 
Yours sincerely, 
Harry Stratton. 

6