A Victorian Labor hopeful accused of running an unregistered charity says allegations he misappropriated funds are part of a smear campaign.
Jasvinder Sidhu wants to contest the safe Labor seat of Tarneit, and has been accused of using money collected through his Let's Feed charity to pay for Labor Party memberships.
But Mr Sidhu says the accusations made by Liberal MP Tim Smith on Tuesday were a smear campaign under the guise of parliamentary privilege.
"I emphatically reject the allegations made against myself and Let's Feed, a community based social movement that helps those most vulnerable within our community," Mr Sidhu said in a statement to AAP.
"It saddens me that people are using parliamentary privilege to smear me as I seek pre-selection."
Consumer Affairs Minister Marlene Kairouz confirmed her department was investigating the allegations but said it would be inappropriate to comment further.
Mr Sidhu said he welcomed the opportunity to open his organisation's books to Consumer Affairs "to demonstrate I have acted ethically, morally and legally at all times and to repudiate this distressing politically motivated attack".
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