Corruption claims won't topple Cesar
Victorian Labor MP Cesar Melhem says he will stay in State Parliament and fight allegations of corruption from his days as a union boss.
The trade union royal commission has heard criminal charges are brewing over allegations of dodgy deals struck with employers while he was head of the Australian Workers Union (AWU) Victoria branch.
Documents released last Friday night claim Mr Melhem may have committed criminal offences by allegedly receiving corrupt and secret commissions.
The counsel assisting the commission is looking into allegations that Mr Melhem arranged payments of $100,000-a-year by construction company Thiess John Holland to the union as part of backroom deals for the building of Melbourne's $2.5 billion EastLink tollway.
The “side deal” was designed to last for three years, and was allegedly based on false invoices, without the knowledge of union members.
Separately, Mr Melhem is accused of soliciting corrupt payments from cleaning company Cleanevent.
The allegations relate to a controversial deal in 2010, which saw the AWU Victoria branch allegedly keep casual cleaners on WorkChoices-era wages (saving the company about $2 million in wages) in exchange for annual payments of $25,000 to the union.
Mr Melhem stood down as the Victorian Government's Upper House whip after the Cleanevent deals made it to the royal commission in June.
The State Opposition has called for him to be kicked out of the Labor Party, but Mr Melham says he will stand his ground.
“I am completely innocent of all of these charges, I'll be defending these charges,” Mr Melhem said on Tuesday.
“The counsel assisting the commission made it quite clear that no AWU official, including myself, has personally benefited from any of these allegations.
“I stand by my record representing workers and my record of 23 years at the AWU. I am proud of that record and I will be defending that record.
“There's nothing I'm embarrassed about and I'm going to continue doing my normal job as the member for Western Metro.”
Premier Daniel Andrews is standing by him for now. .
“He's a member of my team and he's working hard for the local community that put him into the Victorian Parliament,” he told Macquarie Radio.
“Let's wait and see what happens.”