A Victorian Labor MP has sensationally crossed the floor in state parliament to support a referral by disgraced MP Adem Somyurek for the party's red shirts scandal to be investigated by the Ombudsman and anti-corruption commission .
MP Kaushaliya Vaghela's vote secured Mr Somyurek's motion, which asks parliament to refer the allegations of corruption involving the Labor Party to the Ombudsman and IBAC.
The motion was carried 19 votes to 17, with the support of the Opposition, several crossbenchers and Ms Vaghela.
In 2018, Victorian Ombudsman Deborah Glass found that Labor had misused $388,000 of public money through the red shirts arrangement, which saw campaign organisers employed as electorate officers.
The party repaid the money and police did not lay charges.
Ms Vaghela's decision has stunned her caucus colleagues and her future in the party in now in jeopardy. It is against party rules to go against the caucus.
It is now up to the integrity bodies to decide whether or not they investigate the matter further.
MP who crossed floor was due to be ousted at next election
Late last year, Ms Vaghela was not re-endorsed for this year's election as part of a factional purge.
Soon after the vote, the MP put up a statement on social media, which said that, as a former staff member of the Socialist Left faction of the party, she knew "all about their branch-stacking activities and their electorate offices being used for factional purposes".
"If branch-stacking and factional operatives working in electorate offices is corrupt, then the Socialist Left and all other factions must be investigated," she wrote.
She described branch-stacking as "endemic in the ALP" and said Wednesday's successful motion gave the Ombudsman and IBAC the power to "expand their terms of reference and include all factions in the Labor Party".
Inside parliament, Labor MPs were shocked, and nearly all said Ms Vaghela would be kicked out of the party.
A move to the crossbench will make the task more difficult for the Andrews Government if it needs to pass contentious legislation in the lead up to November's election.
Ms Vaghela was part of Mr Somyurek's Moderate Labor faction that has crumbled since he was kicked out of the party.
Whistleblower says motion means his actions weren't 'in vain'
Mr Somyurek, who is now an independent, wanted the scandal to be investigated by IBAC and he moved a motion in the Upper House on Wednesday requiring crossbench support.
In a statement, a government spokesperson said anything referred to the Ombudsman was "a matter for her".
A spokesman for the Ombudsman said under the Ombudsman Act, any matter could be referred to the watchdog through parliament.
"Should the Ombudsman receive a referral, she will determine how any investigation will be conducted and will report to parliament in due course," they said.
Mr Somyurek is still being investigated by IBAC over a branch-stacking scandal.
He has been twice sacked by the Premier but he denies the motion is revenge.
Former Labor staffer Jake Finnigan, who blew the whistle on the red shirts scandal, said he welcomed news of the motion's success.
Mr Finnigan was arrested and strip-searched by police in 2018 as the matter was investigated.
"The passage of Mr Somyurek's motion today means that me speaking up in 2015 and putting myself at risk and torpedo-ing my future progression within the Labor Party wasn't in vain," he said.
"That I stood up and [did] the right thing and that it will be investigated properly."
Somyurek denies seeking revenge for branch-stacking fallout
Victorian Opposition Leader Matthew Guy said the move was "extraordinary" and showed the government was distracted and focused on itself.
"It shows this government is yet again in disarray at the worst possible time for Victoria," he said.
"I hope, more than anything else, that this matter is solved, that any corruption issues are dealt with and are managed and Victorians can get a government that is focused on them."
Earlier on Wednesday, crossbench MP Clifford Hayes said he would vote in favour of the motion because he was "concerned about the misuse of public funds for party purposes".
But Reason Party MP Fiona Patton, who also sits on the crossbench, said she wouldn't support Mr Somyurek's referral.
"The motives behind this motion are not honourable. The motives behind this motion are vengeful and attention-seeking," she said.