NSW Labor leader Jodi McKay admits the party is in a "terrible state" and has lost the trust of voters after explosive evidence at an anti-corruption inquiry led to the dumping of general secretary Kaila Murnain.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The opposition leader on Thursday said Ms Murnain will never stand as a Labor candidate and she'll not be returning as party secretary, with officials to discuss her replacement in the coming days.
Ms McKay revealed she's yet to speak to Ms Murnain who on Wednesday told the Independent Commission Against Corruption she knew of a likely illegal donation to the ALP.
Ms Murnain told ICAC that in September 2016 upper house MP Ernest Wong told her Huang Xiangmo - who was a prohibited donor - had donated to the state Labor party and she'd failed to act on that information.
Ms McKay on Thursday told reporters Ms Murnain had made "the worst error in judgment" and had paid a "very, very high price".
"Right now our party is in a terrible state," she said.
"We will not win government unless people trust us. Right now, they don't trust us."
The opposition leader expressed her disbelief at how an alleged illegal donation could have happened not long after ICAC finished its inquiry into corrupt conduct by Labor MPs.
"How does this keep happening? ... That had just finished and yet here we were with bags of money being brought in to Labor headquarters," Ms McKay told reporters.
"I cannot fathom that."
Ms Murnain will remain suspended on full pay until the end of the six-week ICAC inquiry, after which a successor will be appointed.
Pat Garcia was on Wednesday night named acting general secretary.
Rail, Tram and Bus Union national secretary Bob Nanva is tipped as the front runner to replace Ms Murnain with former Julia Gillard staffer Andrew Downes and Electrical Trades Union officer George Houssos also touted as possible replacements.
Ms McKay vowed Ms Murnain - whom she labelled a "broken person" after the ICAC revelations - would never be permitted to run as a state or federal Labor candidate.
"What ICAC has done is thrown open the door, that's how it feels to me, they've let the light in," she said on Thursday.
"There are a number of people who still have to give evidence. I want to hear exactly what they have to say before making any further decision."
The opposition leader was also asked whether NSW Labor was "back to square one" following the party's dark era of corruption scandals in the 2000s.
"When I came into this role, I said part of my job was to rebuild trust," she replied.
"If we get a stronger and better governance system around our party and our party emerges much stronger (from this) that's a wonderful thing."
Australian Associated Press
