‘Doesn’t pass the test of everyday community standards’: Criticism of Danny Pearson’s approval of new lease with Telstra

Victoria’s Assistant Treasurer Danny Pearson’s ministerial judgment has been called into question amid claims of another conflict of interest.

Danny Pearson is facing new claims of a conflict of interest. Picture: David Geraghty

Victoria’s Assistant Treasurer, Danny Pearson, is facing fresh calls to resign amid claims of another conflict of interest relating to his ministerial duties and his private share portfolio.

The Herald Sun can reveal Mr Pearson approved the Department of Treasury and Finance entering into a new lease with Telstra while holding up to $10,000 of shares in the company.

It involved negotiating a new Telstra telecommunications lease for major government buildings 1 Macarthur Street and 1 Treasury Place.

It is the third time Mr Pearson’s ministerial judgment has been called into question in the past month despite repeated denials of any wrongdoing.

Mr Pearson’s judgment has come under question. Picture: Luis Ascui

He has previously faced questions over the granting of government contracts to both the Commonwealth Bank and Telstra while holding shares in both companies.

During the last sitting week of parliament he assured Victorians there would be no more controversies surrounding his share portfolio.

He has since placed all his shareholdings in a blind trust, and apologised for his “error of judgment”.

A government spokesman refused to reveal any details of the lease and said a tender process was not relevant because negotiations related to fixed telecommunication assets.

It was claimed there was no feasible open market alternative.

But Opposition MP David Davis said Mr Pearson should have recused himself from any negotiations.

“Pearson should have been a million miles from this, given his clear conflict of interest as a shareholder in Telstra, the very company he gave approval for,” he said.

“How the negotiations proceeded is not the key point. It is the fact he had a financial interest in the outcome.”

Mr Pearson declined to comment.

Mr Davis said it was inexcusable that Mr Pearson had now been caught for a second time intervening and approving commercial deals for Telstra.

“How can it be that a minister of the Crown appears unable to grasp the obvious conflict of interest in approving a lease with a firm in which he personally holds a substantial number of shares” he said.

“This doesn’t pass the test of everyday community standards. These new revelations follow a string of conflicts of interest that have enveloped Mr Pearson.

A government spokesman said: “Mr Pearson has at all times disclosed relevant interests to the parliament.”

Mr Pearson this month apologised for an “error of judgment” following revelations he held shares in the Commonwealth Bank at the time he announced a government contract with the bank.

The Herald Sun later revealed that Mr Pearson had at least five other shareholdings in other companies that also benefited from government decisions.