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ABC News
ABC News
Politics
By Elias Clure

Corruption watchdog searches homes of ALP members over printing rort claims

F M Printing has been named in Parliament as being involved in the alleged scam.

Victoria's anti-corruption watchdog has searched the homes of two Labor Party members in Melbourne, as the investigation into an alleged parliamentary printing rort continues.

Earlier this week, the Independent Broad-based Anti-corruption Commission (IBAC) executed warrants and seized several items at the properties, believed to be in Melbourne's north-west.

It is understood the homes are linked to people connected to Labor MP Khalil Eideh, but IBAC has not confirmed the identities of the property owners.

Mr Eideh has denied any involvement in the alleged scam, which is said to involve money being siphoned from Labor MPs' printing budgets to pay for bogus party memberships in Melbourne's western suburbs.

Former Liberal state director Damien Mantach is in prison over a similar scheme, in which he embezzled $1.5 million from the party's coffers.

In September, Upper House president Bruce Atkinson and Speaker Colin Brooks referred the allegations to IBAC, after Parliament reviewed invoices signed by a staff member in Mr Eideh's office.

Anonymous whistleblowers have claimed hundreds of thousands of dollars have been used in the process.

An inquiry carried out by the Department of Parliamentary Services was limited by its powers of investigation.

"The department was unable to determine if the allegations in the media, and subsequent questions in the House, have substance as its powers of investigation do not extend beyond the ability to examine Parliament records,'' a joint statement in September said.

F M Printing was named in Parliament as being involved in the scandal.

When the printing company was approached by the ABC in September, a man from the business threatened to smash a television camera.

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