Matthew Guy to get campaign support from major Liberal donor

THE Victorian Liberals’ biggest political donor has made a shock announcement, revealing it will directly back Opposition Leader Matthew Guy’s election campaign, outside of the party’s administrative wing.

THE Victorian Liberals’ biggest political donor has revealed it will directly back Opposition Leader Matthew Guy’s election campaign, outside of the party’s administrative wing.

In a bombshell statement, the Cormack Foundation has announced it will turn the money tap on for the coalition’s bid to win government in November despite an ongoing spat between it and Liberal Party state president Michael Kroger.

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This could see money directed to advertising campaigns or to events held by Mr Guy, although the foundation has not explained exactly how it would bypass party finances to deliver support.

The Cormack Foundation, which holds between $70 million and $80 million, had for many years been the Liberal Party’s main benefactor.

Liberal party President Michael Kroger leaves court after the Cormack Foundation case. Picture: Stuart McEvoy.

But when former Liberal Party state director Damien Mantach was jailed for stealing $1.5 million in party funds, the Foundation refused to hand over more money until financial governance reforms were in place.

The party, led by Mr Kroger, launched a legal bid to extract money from the Foundation, but a Federal Court ruling last week failed to get it effective control of the organisation.

The Cormack statement released today says the court recognised it was “independent from the Victorian Liberal Party”.

“Accordingly, Cormack Foundation will resume its normal activities including making donations supporting liberal and free enterprise causes consistent with the Company’s objectives,” it says.

“Cormack Foundation will support the election of a Matthew Guy Coalition Government in

Victoria and will now commence discussions to that effect.

“Cormack Foundation will not direct any donations to the administrative wing of the Victorian

Liberal Party until independent verification confirms that the governance reforms recommended by PPB Advisory following the theft of Party funds by a senior official have been implemented and are functioning effectively.”

Victorian Opposition Leader Matthew Guy. Picture: AAP Image/Alex Murray

If further legal action was launched against the foundation, as flagged by Mr Kroger last week, it would turn the donations tap off for the state Liberals until the matter was resolved.

But Mr Kroger said the party had made all the relevant governance changes and that an independent Finance Committee Chair would be appointed in the next month.

“This is an extremely welcome development and will help us rid Victoria of the Andrews Government which is the most extreme in our history,” Mr Kroger said of the foundation funding Mr Guy’s campaign.

Mr Guy said this morning that the party needed to have a “good relationship” with Cormack.

“I think you’ll find that the administrative committee of the party, as much as the Cormack Foundation, want to have a sensible relationship going forward,” he said.

“None of us want to continue any kind of sparring with each other, it’s time to get on and do things properly.

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