Sam Dastyari

Chinese influence scandal

In September 2016, Dastyari resigned as Manager of Opposition Business and Consumer Affairs Spokesman after reports emerged that he had asked a donor with links to the Chinese Communist Party to pay a travel bill.^[16] It was revealed that Dastyari had asked a Chinese company, Top Education Institute, run by a businessman with links to the Chinese government, to cover a travel expense (more than $1600). Yuhu, another Chinese company, paid an undisclosed settlement agreement for Dastyari when he was being sued for more than $40,000 plus costs.^[16] It later emerged that the settlement figure was around $44,000 ^[17]

Dastyari spoke at a number of Chinese-language press conferences and was at odds with the Australian government's policy, as well as his own party's policy, on the South China Sea. Malcolm Turnbull, the Prime Minister, accused him of accepting money in exchange for supporting China in its South China Sea territorial disputes.^[18] The uproar over Dastyari's actions was seen by The Economist as a sign of the changing mood among Australians regarding Chinese investment.^[19] Initially, Dastyari attempted to defuse the situation by offering the money he had received to a charity; however, the charity refused to accept the donation stating that it "did not wish to be compromised" by taking the payment. As a result of this controversy, on 7 September 2016 Dastyari resigned from his shadow frontbench position as Manager of Opposition Business and spokesman for consumer affairs, and returned to the backbench.^[14]

In 2017, following reports that he contradicted Labor's policy on the South China Sea territorial dispute (supported the position of China) and offered counter-surveillance advice to the Chinese donor in question, property developer billionaire Huang Xiangmo, Dastyari was removed from his roles as Senate Deputy Opposition Whip and Senate Committee chair.^[20] On 29 November 2017, audio recording was released of Dastyari speaking at a conference alongside Yuhu's Huang Xiangmo in June 2016. This clarified the extent to which Dastyari contradicted Labor policy on territorial disputes in the South China Sea, as he claimed that "[t]he Chinese integrity of its borders is a matter for China." Media reports also stated that Dastyari had told the donor, Huang Xiangmo, that his phones were likely being tapped by intelligence agencies and that they should leave their phones inside and speak outside to avoid being overheard.^[21] Party leader Bill Shorten stripped Dastyari of his role as Deputy Opposition Whip the next day, amid calls from Prime Minister Turnbull and the Government for Dastyari to stand down from the Senate.^[22] In December 2017, reports emerged that in 2015 he attempted to persuade Labor's foreign affairs spokesperson, Tanya Plibersek, to cancel a meeting with a member of Hong Kong's pro-democracy camp.^[23]

On 12 December 2017, he announced he would be resigning from the Senate prior to the 2018 parliamentary year.^[24] Dastyari's decision not to resign with effect immediately attracted some criticism, partly because it would allow him to continue earning a Senator's salary.^[25] He formally submitted his resignation to the President of the Senate on 25 January 2018.^[7]

Ross Babbage, former head of strategic analysis at the Office of National Assessments, described Dastyari as an "agent of influence" and part of China's aim to build local support for its policy positions around the world.^[26] As a result of the scandal, Dastyari was the subject of petitions with thousands of signatures calling for him to be charged with treason.^[26]