The Liberal Party has been hugely embarrassed over a campaign team caught delivering fake letters linking Labor with the Bali bombers.
The grubby night-time operation in St Marys, in the seat of Lindsay, was busted by a squad of ALP sleuths who conducted a stake-out.
Police have been called in to investigate the distribution of the letter, as well as the Australian Electoral Commission.
The Liberal Party yesterday expelled two members involved in the scheme.
The gang allegedly included Gary Clark, husband of retiring MP for Lindsay Jackie Kelly, and party state executive member Jeff Egan, who today vowed to "clear my name".
"I have been falsely accused of distributing unauthorised material," Mr Egan said in the statement. "I categorically deny distributing any unauthorised material."
Another was named by Labor as Troy Craig, president of the Glenmore Action Group.
As Prime Minister John Howard today denied any knowledge of the smear campaign, Ms Kelly said she did not approve of the pamphlet, but labelled it a "Chaser-style of prank", a reference to ABC TV comedy team The Chaser.
"I think its intent is to be a send-up but obviously it hasn’t worked," she told ABC radio.
"I think if you read it you’d be laughing. Most people who have read it have said ‘That’s a Chaser-style of prank’."
Ms Kelly said the "prank" was "really immature stuff" that would not influence any voters.
SheKelly denied the pamphlets were printed in her office and said she didn’t know who funded or authorised the printing.
Asked if she could guarantee no funds came from her office or the Liberal Party, she replied: "Yeah, yeah, absolutely."
"Everyone has got home printers and what not. You can do up dodgy flyers how you like. Anyone could have, even the goon squad following," she said.
Ms Kelly said she was "upset" with her husband.
"I’m a bit upset with him, but no, look I love him," she said.
"He hates the unions with a passion and after weeks and weeks of letterboxing, what gets to be boring material, of a repetitive message that we get them to letterbox all the time, they come up with their own skylarking over a few beers and think that something’s funny.
Ms Kelly said the state and federal offices of the Liberal Party were not involved in the pamphlets.
MrHoward today strongly condemned the letter drop.
"The first I knew about this was yesterday morning," Mr Howard told ABC radio today.
"I was told about it by my chief of staff who’d got the information from the NSW party director.
"I said `look, this has got to be dealt with by the (party) organisation’.
"I condemn it, I dissociate myself from it. It’s no part of my campaign and the party has acted promptly to deal with it.
"As far as I’m concerned, that was the right and only response."
Mr Howard would not comment on reports the leaflets were distributed from Ms Kelly’s home.
"I don’t know. You’d have to speak to others about that," he said.
"I am not in control of the actions of all people who are members of my party.
"I react when I believe something wrong has occurred. I don’t think you can mistake the words I have used. I have made my position very clear.
"This is no part of my campaign. It is no part of the Liberal Party’s campaign. I don’t want anything to do with it."
Liberal sources said a group of campaign volunteers were involved and had not been authorised.
Mr Clark, a dentist, has a reputation among party campaigners for coming up with distinctive ideas and trying to carry them out.
The letter appeared to be from a Muslim organisation, the Islamic Australia Federation. But the organisation does not exist.
The fictitious group was said to be backing Kevin Rudd because Labor supported forgiveness for "our Muslim brothers who have been unjustly sentenced to death for the Bali bombings".
It also said Labor endorsed construction of a mosque in St Marys.
"In the upcoming federal election we strongly support the ALP as our preferred party to govern this country and urge all other Muslims to do the same," the letter read.
It was clumsily worded and ended with "Ala Akba", a dismal attempt at the traditional Islamic salute of "God is Great" – "Allah Akbar".
However, the letter drop wasn’t organised in a mosque or a madras, but in the family home of Ms Kelly and Mr Clark.
ALP national secretary Tim Gartrell yesterday formally complained to the AEC, citing the offence under the Electoral Act of printing, publishing or distributing election material without authorisation or the name of the printer.
Labor officials were tipped off and on Tuesday night staked out a Penrith house in the same street as Ms Kelly. They followed a small convoy of cars to St Marys, where the group split up and began putting the dodgy material into boxes.
The Labor officials later confronted the men, identified three and photographed two.
Labor frontbencher Anthony Albanese today attacked Ms Kelly’s response as "unbelievable".
"This is a document that has an ALP logo in two spots, it has flags of two countries, it has photos of mosques, it has photos of Sheik al-Hilali, it has another picture on it, it presses buttons about a range of issues including mosques in St Marys and quotes going back to Keating," Mr Albanese told Southern Cross Broadcasting.
"This hasn’t been done up in a kitchen, this has been done up professionally by someone using resources unknown, and Jackie Kelly doesn’t explain where it came from."
He said the leaflet had been professionally printed.
"This isn’t a lark, this is serious," he said.
"This divides the Australian community, this is completely consistent with the Liberal Party’s push polling tactics that they’ve used before.
Liberal state director Graham Jaeschke yesterday said he had been "made aware of an incident" involving unauthorised and false election material.
"He condemned the action. The people allegedly involved are no longer members of the Liberal Party. I will refer this incident to the Electoral Commission," Mr Jaeschke said in a statement.
He declined to name those expelled when asked by The Daily Telegraph, but said two members were involved and that he thought there had been a total of five men.
The fake flyer outraged Islamic leaders who told The Daily Telegraph yesterday the Islamic Australia Federation did not exist.
Sydney-based chairman of the Australian Federation of Islamic Councils Ikebal Patel said: "I think it’s very deceitful and is an indication of the level of politicking and electioneering. It should be investigated. It does not stand well, especially as its untrue.
"No community, race and religion should be used for one side’s political ambition."
He urged Muslims to overlook the false letter and decide for themselves who they would vote for.
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See the offensive flyer here: http://www.smh.com.au/images/Islamic%20Pamphlet.pdf