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Victorian MP Cesar Melhem resigns as government whip Victorian MP Cesar Melhem resigns as government whip
(35 minutes later)
The Victorian MP Cesar Melhem has resigned as government whip. Victorian government whip Cesar Melhem has resigned, denying allegations that he was part of a deal which saw thousands of workers denied penalty rates owed to them.
On Tuesday the premier, Daniel Andrews, said the former Australian Workers Union (AWU) boss resigned from his upper house position on Monday night. During hearings at the royal commission into trade union governance and corruption last week, it was alleged that during his time as state secretary of the Australian Workers’ Union, Melhem negotiated a deal that saw workers at a cleaning company denied $2m in penalty wages owed to them.
“That will be confirmed by caucus this morning, as it should be,” Andrews said. In return, the union received $25,000 each year from the company, called Cleanevent Australia, payments which were described as membership fees. The company was closed in 2013.
Melhem had a phone to his ear when he arrived at parliament on Tuesday morning and responded to only one question about whether he felt he had betrayed the members of his union. On Tuesday morning following an early morning government caucus meeting, Melhem issued a statement saying he had resigned, citing “continuing press speculation”.
“Absolutely not,” he said. “After consulting with my family and colleagues over the weekend, I called the Premier last evening and advised him of my intention,” Melhem said.
The royal commission into trade union governance and corruption in Sydney has been told that during his time as AWU state secretary, Melhem allegedly did a deal with a cleaning company which shortchanged workers out of $2m a year in penalty rates. “I have formally advised the caucus this morning.
Melhem replaced Bill Shorten as AWU state secretary in 2006. “I have made this decision as I believe that the continuing press speculation about my role in the government has the potential to distract the Andrews government from the important task it undertakes on behalf of the people of Victoria.
He has strongly denied the allegations against him and issued a statement on Tuesday saying he had formally advised caucus of his resignation as whip. “I again deny any allegation of wrongdoing made against me at the trade union royal commission.”
“I have made this decision as I believe that the continuing press speculation about my role in the government has the potential to distract the Andrews government from the important task it undertakes on behalf of the people of Victoria,” he said. Following the meeting, Victorian premier Daniel Andrews was expected to announce a new government whip within hours.
He again denied any allegation of wrongdoing made against him at the royal commission. Melhem’s resignation follows the sacking of small business minister, Adem Somyurek, by Andrews last month.
“I have always acted in the best interests of working people and will continue to do so,” he said. Somyurek was stripped of his portfolio following allegations of bullying against him, which he denies.
Melhem’s evidence to the royal commission was contradicted by a former union organiser, John-Paul Blandthorn, who is now an adviser to Andrews. Andrews was criticised by the opposition for taking decisive action against Somyurek while allowing Melham to remain in his role despite the mounting allegations against him.
Andrews said he would not run a commentary on the royal commission, but he backed Blandthorn.
“He’s a valued member of my staff and he appeared after being requested by the royal commission to appear as a witness, a witness only,” the premier said.
Andrews said he expected Melhem to focus on being a hardworking local MP.