EXPELLED Newcastle Labor member Tahlia Kelso says she felt "betrayed" by the party's decision to kill off an investigation into bullying claims, saying head office prioritised electoral success over the welfare of its members.
Ms Kelso has also called out what she describes as "racism" after learning that a group of new Maryland-Fletcher-Minmi branch members were referred to in a document submitted to head office as "Punjab Indians".
"A question has been raised about the validity of some people's membership, based purely on their race and ethnicity, describing the members as Punjabi Indians," she said.
"I'm a South-Asian woman, are they saying people from diverse backgrounds shouldn't be allowed in Labor branches in Newcastle?"
After losing a preselection battle in May, Ms Kelso submitted her resignation to NSW Labor on July 25 after opting to run as an independent in Dr Ross Kerridge's Our Newcastle team at the September local government election.
Her resignation was not accepted and she was expelled from the party earlier this month.
Ms Kelso told the Newcastle Herald she was "angry and upset" after reading the Operation Bluehaven report, which details bullying allegations brought by six members described as "supporters" of Wallsend MP Sonia Hornery against loyalists of lord mayor Nuatali Nelmes.
According to the report, Ms Kelso's husband, Jesse, was interviewed as part of the investigation. Still a Labor member, Mr Kelso was involved in several voter challenges brought during preselection and the credentialing process.
"I joined what I thought was a progressive political party that believed in good values and believed in supporting people," Ms Kelso said.
"After this whole saga, everything I've seen and everything I've witnessed just said to me that all NSW Labor really cares about is getting elected. As a member I felt betrayed."
Ms Kelso described the decision to kill off a planned independent investigation into the bullying claims as "disgraceful".
The claims were brought after seven Newcastle members were charged "en masse" under the party's rules in February, with offences ranging from disloyalty, defamation and not meeting party standards to be a candidate.
After six of the charged members complained that they had been falsely accused as part of a campaign to bully them and submitted a 104-page dossier detailing their grievances known as Operation Bluehaven, Labor's external complaints manager, Sydney-based lawyer Brad Baker, of Griffin Legal, recommended a full investigation.
However, after initially communicating that the matter would be investigated, Mr Baker said he had been told the investigation would not proceed as the charges had been dropped and "commitments have been made that behaviour of this nature will cease".
The charges were all dropped the day after it was announced Cr Nelmes' team, besides councillor Carol Duncan, had won preselection.
A Labor spokesman said all complaints were handled by an independent complaints manager in accordance with the ALP's complaints handling policy and were treated confidentially.
Ms Kelso said the lack of action made her "really concerned for NSW Labor and its members".
"I think if there's a desire to cover-up issues to protect electoral success in Newcastle, then there's probably the same desire elsewhere," she said.
Ms Kelso, who joined Labor after moving from Hamilton to Beresfield, was a member for about three years and said she was attracted to the party's "socially progressive" policies.
Just days before she submitted her resignation, Ms Kelso successfully moved a motion as Beresfield branch secretary condemning what she described as racism towards members of the Maryland-Fletcher-Minmi branch.
The racism claim relates to one of the charges detailed in the Operation Bluehaven report brought by Wallsend branch president David Norris against the Georgetown-Waratah branch secretary Justin Davis.
In an appendix to the charge, Mr Norris details the make-up of members of the newly formed Maryland-Fletcher-Minmi branch, which is loyal to Wallsend MP Sonia Hornery.
"All remaining 'new members' are a group of 11 (possibly up to 30 as conveyed by [Maryland-Fletcher-Minmi branch president] Bert Moonen multiple times and at the MF [Maryland-Fletcher] Charter meeting) Punjab Indian residents," he wrote as one of several points.
Further, Mr Norris added that the members had asked Ms Hornery to assist them build a Hindu Temple in the Watagan Mountains and to secure additional school bus services for their children.
"Thereafter recruited to a 'new ALP branch' by Sonia Hornery's office staffer, Aaron Witcom," Mr Norris wrote.
"Since have spoken to councillors regarding understanding the process of building a Hindu Temple."
Ms Kelso said there was no need to describe the members by their race or ethnicity.
She said the description of the Maryland-Fletcher-Minmi branch members in the charge sheet stood in stark contrast to when 30 people applied to join the Lambton-New Lambton-Kotara branch in February amid allegations of branch stacking that resulted in head office freezing membership applications across the city.
"Their race or ethnicity was never brought up as part of that process or investigation...," she said. "It just isn't relevant."
Mr Norris did not respond to the Herald's questions, but previously said he was unable to comment to due party rules about confidentiality.
Ms Kelso said she was "explicitly told multiple times" by a senior Newcastle Labor figure that her efforts to address concerns about the issues raised in the Operation Bluehaven report would not result in an outcome.
"The whole thing with the investigation just made me feel like the Labor party has no interest in stopping this type of behaviour, or even investigating it, if they think it could impact them electorally," she said.
"And that was effectively why I ended up leaving the party."