Daniel Andrews defends assistant treasurer Danny Pearson amid conflict of interest claims

Daniel Andrews has declared he has “full confidence” in assistant treasurer Danny Pearson despite the minister facing a fourth conflict of interest claim.

Danny Pearson is facing criticism over ‘yet another blatant conflict of interest’. Picture: David Geraghty

Assistant treasurer Danny Pearson is facing a fourth conflict of interest claim, this time over the state government’s $10bn ­Victorian Future Fund.

The Herald Sun can reveal Mr Pearson approved the opening of a Victorian Future Fund account with the ­Commonwealth Bank even though he is a bank shareholder.

The Victorian Future Fund was announced by the government last year, and established using proceeds from the partial privatisation of VicRoads.

It was expected to have $10bn in the medium term. It is understood accounts were also opened with NAB and Westpac.

Danny Pearson issued a fresh apology on Tuesday. Picture: David Geraghty

Documents obtained under Freedom of Information revealed Mr Pearson was briefed on “Opening of Department of Treasury and Finance – ­Victorian Future Fund Bank ­Accounts” last July.

Opposition finance spokeswoman Jess Wilson said Mr Pearson should have recused himself from any involvement.

“Danny Pearson has opened a $10bn bank account of Victorian taxpayers’ money with a bank he holds shares in,” she said.

“How is it acceptable that the decision to open one of Victoria’s largest bank ­accounts with the Commonwealth Bank was made by a Commonwealth Bank shareholder?

“This is yet another blatant conflict of interest for the ­assistant treasurer. How many strikes does it take before the Premier calls him out?”

But Daniel Andrews on Tuesday said he had full confidence in Mr Pearson.

“You all know Danny. He works very hard. He acts appropriately,” he said.

“If anybody has got an allegation to make about something he’s done, well then you should do that.

“He is respected because of the person he is and the job that he does and he works very, very hard.

“He has my full confidence.”

Mr Andrews said he considered the matter to be finalised.

“He has made changes to those issues,” he said.

“He has acknowledged that that ought to have happened earlier but it has happened now, and the matter is over.”

A government spokesman said the contract was a recommendation of the Department of Treasury and Finance.

“Mr Pearson has at all times disclosed relevant interests to the parliament,” he said.

“The minister was not a decision-maker in the awarding of the banking and financial services contract in 2021.

“The process was run by senior independent public servants and there was a probity auditor engaged throughout who signed off on the process.”

It is the fourth time Mr Pearson’s ministerial judgment has been called into question since conflict of ­interest allegations were first raised in February.

He has faced questions over government contracts granted to the Commonwealth Bank and Telstra, companies in which he holds shares.

Mr Pearson apologised for the earlier “error of judgment” over a separate government contract with the Commonwealth Bank. Questions also emerged over other shareholdings, including CSL and Beach Energy, on Mr Pearson’s register of interests.

He has since placed all his shareholdings in a blind trust.

Mr Pearson issued a fresh apology on Tuesday.

Speaking in parliament, he had to be the person giving those approvals in his portfolio but he recognised that his shares could create “perceptions of a potential conflict of interest”.

“That’s why I have unreservedly apologised, that’s why I again unreservedly apologise,” he said.

“That’s why I have placed my interest in a blind trust.”

Mr Pearson said department’s needing to set up new entities, such as the Future Fund, needed to formally request his permission to set up a bank account and that he had then approved it.