The target of a vicious smear campaign has called on the head of ACT Labor to resign, as the contest for preselection formally begins.
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The local Labor branch's preselection for the next federal election began on Wednesday, after an external investigator could not find the source of a dirtsheet circulated about lobbyist and right faction member Kel Watt.
The National Executive passed a motion on Monday allowing the preselections to go ahead, on the condition ACT Labor secretary Matt Byrne withdrew a complaint he lodged against Mr Watt around the same time Mr Watt launched his bid for preselection, and if he sent out an email to all party members condemning the dirtsheet.
It was revealed on Monday Mr Byrne - who is of the left faction - moved to expel Mr Watt from the party in June, after Mr Watt attended a fundraiser for Liberal MLA Mark Parton at the Canberra Greyhound Racing Club.
Mr Watt told Labor's disputes tribunal he was a non-paying guest at the event and was mistakenly thanked in a Facebook post by Mr Parton, who'd meant to tag greyhound race caller Kel O'Rourke.
The investigator hired to determine the source of the dirtsheet said it was unusual that a complaint from a Labor branch secretary against a preselection candidate was left unresolved for two months.
Mr Byrne told The Canberra Times on Monday he had decided to withdraw the complaint when it "became clear it would potentially colour the upcoming preselection".
But sources within the party suggested on Wednesday the complaint had not been withdrawn, despite explicit instructions from the national office.
It is understood the national executive could have taken formal action if the complaint was not withdrawn.
Mr Byrne told The Canberra Times he wrote to the chair of the disputes tribunal on Monday to formally withdraw the complaint.
"What he does with it is up to him," Mr Byrne said.
He also said it was a recommendation, not an order, from the national executive to withdraw the complaint.
Nineteen minutes after The Canberra Times spoke to Mr Byrne, the head of the disputes tribunal Marc Emerson emailed Mr Watt to say the dispute had been closed without a finding.
That email stated the withdrawal request had been lodged on Monday.
The ACT Labor branch also emailed some members a letter on Thursday morning, drafted by the national executive, that condemned the dirtsheet.
"ACT Labor condemns the distribution of anonymous, unsubstantiated and defamatory material targeting a member of our branch (Kelvin Watt)," it read.
"ACT Labor believes that such acts damage the party as well as cause harm to the people involved.
"In participating in the preselection, members should not be swayed by anonymous dossiers and instead cast their votes based on the values and platforms of each of the candidates in good faith.
"If members have legitimate complaints to make concerning any member of our branch then they should use the formal complaints processes at their disposal."
However, Mr Watt was not satisfied and has called on Mr Byrne to resign or be sacked.
"Through a combination of action and inaction through this preselection he's shown nothing but bias by deliberately perverting an open democratic process," Mr Watt said.
"It's time for him to step down or be removed at conference."
Mr Byrne said he rejected the "silly claims".
Nominations for preselection close next Wednesday, with voting to take place until the end of the month.
The ballot will be counted and declared on September 1.
The factional muscling within ACT Labor comes as embattled Labor MP Emma Husar claims members of her own faction in NSW Labor that had been opposed to her since her preselection encouraged ex-staffers to come forward with damning allegations about bullying and sexual harassment.
The findings of an investigation into the allegations are due on Friday however, Ms Husar has already announced she will not re-contest the marginal seat of Lindsay at the next federal election because of the damage to her reputation.
