Ex-Liberal premiers slam Cormack Foundation dispute as ‘disaster’

FORMER Premiers Ted Baillieu and Jeff Kennett have led a chorus of Liberals denouncing as a “disaster” the outcome of the party’s litigation against its largest donor, the Cormack Foundation.

FORMER Premiers Ted Baillieu and Jeff Kennett have led a chorus of Liberals denouncing as a “disaster” the outcome of the party’s litigation against its largest donor, the Cormack Foundation.

Federal Court judge Jonathan Beach on Thursday handed the Liberal Party control of 25 per cent of the shares in the Cormack Foundation — which holds between $70-80 million — but rejected claims that would have given it total effective control of the organisation.

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Former Premier Ted Baillieu. Picture: Steve Tanner

Former Victorian Premier Jeff Kennett. Picture: David Geraghty

The outcome leaves in place the stalemate that has seen the Cormack Foundation stop giving money to the Liberal Party after previously being its major donor for many years.

Despite the court ruling that only 25 per cent of the Foundation’s shares belong to the Liberal Party its President, Michael Kroger, said he was writing to the Foundation’s directors and shareholders calling on them to resign.

“What it means is that the party will now expect the Cormack directors to acknowledge the decision of the court and hand control back to us,” he said.

“If that doesn’t happen, then obviously further options will need to be examined.”

He later released a video to party members talking up the outcome in court.

Mr Baillieu, who rarely speaks out on internal matters, said the case has been “a disaster for the Liberal Party” and that three million dollars had been wasted.

“Long term, trusted supporters have been vilified and a critical relationship with a critical supporter has been fractured while nothing has been gained,” Mr Baillieu said.

Michael Kroger (right) leaves a hearing on the dispute earlier this year. Stuart McEvoy.

His comments were echoed by former Premier Jeff Kennett said Mr Kroger’s position was “untenable and should resign as president”.

He also called on Mr Kroger to make good on his promise to pay the Liberal Party a million dollars if the litigation was unsuccessful.

His comments were endorsed by senior state parliamentarians who said Mr Kroger had to take responsibility for the debacle.

“Michael can try and spin this anyway he likes but it is a complete disaster of his own making,” a senior lower house MP said.

“If he has any respect for our long-long suffering members and supporters, he will do the right thing and resign immediately.

His words were echoed by another MP who agreed it was a “disaster”

“He was the architect and he has to take responsibility,” the MP said.

Liberals were also scathing of the footage Mr Kroger released, with one saying “it looks like a hostage video”.

Mr Kroger’s call to resign was rejected by the board of the Cormack Foundation which said the Liberal Party had completely failed to achieve its objective of confirming ownership or control.

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