Former Victorian treasurer John Lenders resigns from VicTrack

A KEY architect of Labor’s rorts-for-votes scheme has resigned from a prized taxpayer-funded job — two days before the release of a major ­Ombudsman investigation into the scandal.

Labor's John Lenders and premier Daniel Andrews (inset).

A KEY architect of Labor’s rorts-for-votes scheme has resigned from a prized taxpayer-funded job ahead of Wednesday’s release of a major ­Ombudsman investigation into the scandal.

Former treasurer John Lenders’ resignation as chair of the ­government-run rail company, VicTrack, was confirmed on Monday.

He wrote to the Andrews Government two weeks ago to advise he would pull out of the reappointment process.

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“I write to advise that I wish to withdraw my name for reappointment as Chair of VicTrack,” the letter said.

The former state treasurer said a “very busy” year ahead, including helping care for his new grandchildren, had helped him reach the decision.

“Given the need for VicTrack to remain very focused on doing its part on delivering the State’s transport agenda, I do not think it appropriate that I seek reappointment at this time,” it said.

Former Victorian Treasurer John Lenders.

John Lenders’ resignation letter.

Mr Lenders helped set up a community campaign team, dubbed the “red shirts”, that Premier Daniel Andrews has credited with playing a key role in Labor’s 2014  election victory.

Mr Lenders’ shock resignation from the $90,000-a-year public job has sparked concerns among Labor MPs the report by Victorian Ombudsman Deborah Glass could be highly damaging to the government.

Ms Glass is probing revelations by ALP whistleblowers — first reported by the Herald Sun in September 2015 — that hundreds of thousands of ­dollars in public money was misused.

The taxpayer funds were used by Labor MPs to pay for staff who were supposed to work as electorate officers, but were then controversially deployed to campaign in marginal seats. Some of them had almost no contact with the MPs who employed them and instead ran doorknocking and phone database operations.

How the Herald Sun broke the ALP rorts for votes story.

John Lenders delivering the 2008 state budget at Parliament House in Melbourne.

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Whistleblowers said Mr Lenders told field organisers in 2014 how they would be paid, with Labor picking up the tab for three days a week and the parliament paying for two days.

When asked whether that was legal, whistleblowers said Mr Lenders allegedly told them it was a “fine line” but should be OK.

Known as field organisers, the 20-plus campaign team ­directed a 5000-strong army of “red shirt” volunteers.

When the allegations were reported by the Herald Sun, Mr Andrews said “no rules have been broken” and he took responsibility for everything that happened with the Victorian ALP under his leadership.

Deputy premier James Merlino told the Herald Sun he was not worried about the findings of the Ombudsman report into misuse of parliamentary staff during the 2014 election campaign.

Mr Merlino said he stood behind his party’s view that there was no wrong doing or misuse of parliamentary staff during the 2014 campaign.

Mr Merlino said Labor’s campaign activities “were within the rules” and he himself provided staff to the then Opposition Room’s pool as it was standard practice.

He said he was confident that he personally had done nothing wrong or witnessed any wrongdoing.

But Mr Merlino said Mr Lenders resigned his role as Chair of Victrack for his own reasons.

“John has made it clear he plans to spend more time with his grandkids and more time travelling. That is entirely up to him.”

He said the government would respond to Ms Glass’ report in great detail when it is released on Wednesday.

“We will respond to the report, its findings and recommendations when it is released tomorrow,” he said.

“I’m not going to provide a running a commentary today. We stand by what we have said and I look forward to the report when it is handed down tomorrow.”

Victorian Premier Dan Andrews. Picture: Sarah Matray

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Mr Lenders, who was leader of the opposition in the Legislative Council before the last election, was one of the architects of the scheme and is also likely to face intense scrutiny.

The Ombudsman was initially blocked from starting a probe by the Andrews Government, which wasted up to $1 million taking the matter to the Supreme Court, Court of Appeal and High Court.

The government unsuccessfully argued the Ombudsman didn’t have the power to investigate MPs from the Legislative Assembly after a referral from the Legislative Council.

It is understood Ms Glass will release the report of her investigation on Wednesday.

Mr Lenders did not respond to the Herald Sun.

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