Sam Dastyari quits as Labor senator over China connections

The Labor senator Sam Dastyari has quit the Australian Senate, after weeks of controversy over his links and interactions with Chinese donors.

Dastyari said his position had become untenable in the wake of further revelations regarding his contact with Huang Xiangmo, a donor with links to China’s ruling communist regime, which forced his first demotion in 2016.

“Today, after much reflection, I’ve decided that the best service I can render to the federal parliamentary Labor party is to not return to the Senate in 2018,” he said.

“I’ve not reached this decision lightly. But in my deliberations, I’ve been guided by my Labor values, which tell me that I should leave if my ongoing presence detracts from the pursuit of Labor’s mission. It is evident to me we are at that point, so I will spare the party any further distraction.”

Dastyari said he was quitting so the party could focus on the next election but said he left with his integrity intact.

“I love the Labor party,” he said. “It has always given me more than I’d given back. I know Australia needs a Labor government and I refuse to let my personal situation put that prospect at risk.

“I have always put the pursuit of the Labor cause first. Reflecting on the events which led to my decision, I leave knowing that I’ve always honoured my parliamentary oath. I’ve always acted with integrity, and I remain a loyal, patriotic Australian.

“My parents, Ella and Nasser, fled a war-torn Iran, so that they could, like so many migrants, start a new life here as Australians. I’m also proud of my achievements as an Australian senator.”

Dastyari said he would work with the party’s New South Wales branch to “coordinate” his departure, with Kristina Keneally already considered a frontrunner to replace him if she fails to win the Bennelong byelection on Saturday.

He did not take questions.

The Labor leader, Bill Shorten, had been under increasing pressure to intervene and bring an end to the Dastyari controversy, which has overshadowed Labor’s attempts to win Bennelong.

In a statement released moments after Dastyari left his press conference, Shorten said he had been told on Tuesday morning of the 34-year-old’s plans and “told him I thought this was the right decision”.

“Sam Dastyari is a good, decent and loyal Australian, and an effective parliamentarian, but his judgment has let him down and now he has paid the heaviest price,” Shorten said.

“Sam can be proud of what he has achieved during his time as a senator …

“Sam is also a talented and tireless campaigner – his passion, organising skills and boundless good humour has engaged a new generation of progressive activists.

“I am sure Sam will continue to make a valuable contribution to our country in whatever he chooses to do.”

For the second time in less than a year, Shorten was forced to stand Dastyari down from his additional parliamentary responsibilities, after revelations, first published in Fairfax Media, that the NSW senator had warned Huang he was probably under counter-intelligence surveillance in one of their last meetings.

It was later revealed that Dastyari’s claim of an “off-the-cuff” press conference where he contradicted Australian – and Labor – policy on the South China Sea, was incorrect, with audio of the press conference with Chinese media pointing to Dastyari having responded with prepared remarks.

Dastyari later said he was “shocked” to hear the audio, as it did not match his “recollection” of the event.

On Sunday Fairfax Media revealed that Dastyari had pressured the deputy Labor leader, Tanya Plibersek, who was then the foreign affairs spokeswoman, not to meet a pro-democracy Chinese activist during a Hong Kong trip.

Plibersek did not deny Dastyari had lobbied her to drop the meeting. Her office said only that she did not discuss conversations with colleagues but that the Hong Kong meeting still went ahead “and that speaks for itself”.

On Monday two senior Labor frontbenchers broke ranks to question Dastyari’s political future, with Linda Burney saying he should “consider his future”, while Catherine King said he should “reflect” on his future.

The government seized on the Dastyari stories, with Malcolm Turnbull pushing for Shorten to act as a “test of leadership”, and questioning the Labor senator’s loyalty.

“Whose side is he on, not Australia’s it would seem,” Turnbull said late last month.

On Monday the immigration minister, Peter Dutton, stepped up his attack from last week, calling Dastyari a “double agent” and calling for him to quit the Senate.

In responding to the first stories, Dastyari said suggestions he was not loyal to Australia were “incredibly hurtful”.

Considered a rising star when he blazed into the Senate in 2013, Dastyari’s political prospects were considered irreparably damaged by the scandal.

A powerbroker with the NSW right and a former Young Labor president, Dastyari was seen as a potential future cabinet star but was considered “reckless” by some colleagues.

“He has always let his mouth get ahead of his brain,” one colleague said on Monday. “His mind just moves too fast for anything else to keep up.”

As the Senate rose for the year, the attorney general, George Brandis, confirmed he would be seeking to refer Dastyari to the parliament’s privileges committee, which would have the power to examine Labor’s links to Chinese donors.

Dastyari’s resignation heads off that committee inquiry.