Defiant Attorney-General Vickie Chapman set to ‘stand aside’ after conflict of interest scandal – but won’t resign

South Australia’s besieged Deputy Premier was all smiles this morning after news she will stand aside from her ministerial roles amid a conflict of interest scandal.

Besieged Attorney-General Vickie Chapman will stand down as Deputy Premier and step aside from ministerial roles as she succumbs to a conflict of interest scandal rocking the state government.

In a statement to The Advertiser, Ms Chapman insisted she was not resigning from Cabinet but standing aside to allow Ombudsman Wayne Lines, whose office is funded by her Attorney-General’s Department, to appropriately conduct an independent investigation into her rejection in August of a proposal to build a Kangaroo Island port.

Details of Ms Chapman’s removal from Cabinet were hammered out on Sunday night in a compromise position to enable Premier Steven Marshall to stand by her but respond to a historic no-confidence motion against her passed by state parliament on Thursday.

The opposition likely will claim Ms Chapman’s scalp as further evidence of a government wracked by instability and infighting just months ahead of next March’s state election.

Mr Marshall said Ms Chapman had advised him late on Sunday and he had “reluctantly” accepted “the advice and respects the decision” she had made.

Vickie Chapman is all smiles as she arrives at the State Administration Centre for a Cabinet meeting. Picture: Brenton Edwards

Vickie Chapman gets a hug from Andrew Harris QC as she arrives at the State Administration Centre. Picture: Brenton Edwards

Deputy Premier Vickie Chapman with Premier Steven Marshall in parliament last week. Picture: Keryn Stevens

“I look forward to the conclusion of the inquiry and welcoming her back into Cabinet soon,” Mr Marshall said.

On Monday morning, Ms Chapman looked happy and relaxed as she arrived at the State Administration Centre for a Cabinet meeting. On the way, she received a hug from prominent defamation barrister Andrew Harris, QC, who is spearheading her legal action against Labor frontbencher Tom Koutsantonis.

Ms Chapman said she would advise the Liberal party room that she would stand down as deputy leader.

She said it was “entirely appropriate” to step aside from the ministry “for the duration of the (Ombudsman’s) inquiry” so there was “no impediment to this process being undertaken”.

She argued a precedent of former Labor Attorney-General Michael Atkinson standing aside during a 2003 police investigation and being reinstated less than two months later.

“I maintain that I have made the right decision in respect of the KI seaport proposal and that I had no conflict of interest, actual or perceived,” Ms Chapman said.

Mr Marshall on Friday declared he was confident there would be no adverse findings by the Ombudsman against Ms Chapman, who he again insisted had his 100 per cent support, but vowed to take action if there were.

Opposition Leader Peter Malinauskas said this morning said the Premier had shown “weak leadership” and that Ms Chapman “must resign from Cabinet”.

“First, he refused to act in the face of overwhelming evidence against Vickie Chapman,” Mr Malinauskas said.

“Then, he lost complete control of the Parliament, which led to a historic no confidence motion against her.”

“This is how Steven Marshall reacts to every scandal engulfing his government: repeatedly refuse to act then finally get dragged into doing something when it is way too late.”

State Ombudsman Wayne Lines will now take over investigations. Picture: Tait Schmaal

A parliamentary committee on Thursday referred the matter to the ombudsman for further investigation after its own inquiry found Ms Chapman had an actual and perceived conflict of interest, breached the ministerial code of conduct and on three occasions misled parliament in relation to the port proposal, triggering the no-confidence motion.

Former Labor Attorney-General Michael Atkinson stepped aside from his cabinet post in June 2003, when police investigated allegations he was involved in a legal scandal over inducements.

Mr Atkinson was reinstated as Attorney-General that August after a key government adviser was charged over the legal scandal but the-then acting director of public prosecutions said there was insufficient evidence to charge anyone else.