Dunstan by-election: new legal twist for Liberal candidate Anna Finizio as new political war of words erupt in bitter poll fight

The bitter fight for the state’s most marginal seat has taken a new twist as legal advice given to Labor raises questions about the Liberal candidate.

Dr Anna Finizio at a press conference responding to Tom Koutsantonis. Picture: NCA NewsWire / Morgan Sette

The bitter fight for the state’s most marginal seat has taken a new twist as legal advice given to Labor raises questions about the Liberal’s candidate claims on links to a failed family firm.

Anna Finizio, 37, is battling for the Eastern suburbs electorate of Dunstan against Labor’s candidate Cressida O’Hanlon, 51, after former premier Steven Marshall, 56, quit politics.

Dr Finizio, a lawyer, has been embroiled in controversy over applying for a Labor job and “airbrushing” involvement in a family business before it collapsed two years after she left.

State government ministers criticised comments she was a “director on paper” and had “no involvement in” the firm that would owe more than $22m.

Dr Anna Finizio with Liberal frontbencher John Gardner. Picture: NCA NewsWire / Roy VanDerVegt

Ahead of Saturday’s by-election, Labor released new legal advice from one of the country’s eminent legal eagles who concluded there was “no room for a ‘sleeping’ director”.

Officials said the party, and not taxpayers, commissioned the advice from former Federal Court judge, Raymond Finkelstein, KC, who legal sources said charges at least $15,000 a day.

In his four-page advice, which Labor refused to release the cost of, Mr Finkelstein said directors had many company duties.

Mr Finkelstein, a Victorian-based barrister known as “Ray” who was also royal commissioner into Melbourne’s Crown casino, cites numerous legal examples.

“To put the matter quite simply, a ‘sleeping’ director, that is a director who pays no attention to the affairs of their company, is in breach of their fundamental obligations,” he concluded.

“To summarise, under modern company law there is no room for a ‘sleeping’ director. Every director is required to know what their company is doing.”

Labor's candidate for the Dunstan by-election Cressida O'Hanlon with Transport Minister Tom Koutsantonis. Picture: Facebook

Company records filed with the corporate regulator show Dr Finizio, a former political adviser who also worked as a manager at embattled accounting firm PwC, was director of FG Pty Ltd – trading as Formway Group – three times over eight years between 2009 and 2017.

She was among nine directors including other relatives, records show.

Australian Securities and Investments Commission documents show the 13-year-old electrical meter supplier went into administration in July 2019 with debts of more than $22m.

It also owed 269 workers more than $1.4m in leave entitlements and at least $166,000 superannuation.

Labor’s manager of government business, Transport Minister Tom Koutsantonis said the “explosive” legal advice raised new questions,

“This legal opinion is a damning repudiation of (Dr) Finizio’s claim she was a director ‘on paper’ of a company, which subsequently collapsed,” he said.

Dr Anna Finizio - Liberal Candidate for Dunstan with Opposition leader David Speirs and supporters. Picture: @dr_anna_finizio / Instagram

In a letter to Mr Koutsantonis, who complained to the corporate watchdog, an ASIC spokesman advised its misconduct team was assessing his concerns and would advise if a formal investigation would be launched.

Dr Finizio declined to comment on the legal advice, or the ASIC complaint, but added: “I am solely focused on delivering for the people of Dunstan.”

Opposition spokeswoman Michelle Lensink said Labor’s focus on attacking the Liberal candidate “at a time of record ramping and a cost of living crisis is a matter for (them)”.

“The Liberal Party is focused entirely on delivering for the people of Dunstan,” she said.

Ms Lensink criticised Mr Koutsantonis for “running around demanding public servants waste time by sending correspondence with spurious....attacks against a woman”. 

Ms O’Hanlon, a former political staffer and mother-of-four, has denied Opposition claims she used her Labor staffer job to help husband James, 50, secure high-level government meetings.