MP Russell Northe puts new debt laws to the test

New laws to improve transparency and crack down on dodgy expenses are being tested by an MP who refuses to say much money he owes or to whom.

Debt-ridden Victorian MP Russell Northe has not detailed how much money he owes or to whom, amid fears the state parliament’s new transparency laws are riddled with loopholes.

The independent Morwell MP has declared to parliament that he has “personal loans — verbal undertakings” to “private individuals”.

It was expected Mr Northe would have to name those he owed money to in his register of interests declaration, after laws were passed last year requiring “a description of any personal debt held by the Member, including the name of the creditor”.

Morwell MP Russell Northe won’t say who lent him money.

The Andrews Government billed the legislation as a major overhaul to improve transparency and crack down on dodgy expenses, but has left it to the parliament to enforce.

The Herald Sun believes the parliament is allowing individual MPs to interpret the law and how to report their debts.

A Parliamentary Integrity Adviser, promised by the government in 2017 to educate MPs on “their obligations to disclose various matters in the Register of Interests”, has not been appointed.

Asked about Mr Northe’s declaration, a government spokesman said: “These are matters for Mr Northe and the parliamentary authorities.”

Nationals leader Peter Walsh also said the register of interests was a matter for the parliament.

“My understanding that it is up to the parliament as to whether they accept or whether they are going to check the declarations,” he said. “It’s not just about Russell but is about all members of parliament.”

Nationals leader Peter Walsh.

Mr Northe racked up more than half a million dollars in debt to more than 30 people, including Mr Walsh and other former Nationals MPs, to whom he owed tens of thousands of dollars.

It is believed that he has repaid about 40 per cent of the loan to his former leader but still owes at least $350,000 to colleagues and friends in the Latrobe Valley.

Despite his money troubles, which included borrowing cash he claimed would be used to buy his wife jewellery and a holiday, Mr Northe was returned to state parliament with 19.56 per cent of the primary vote at last November’s election. He won 44.42 per cent of first preferences as a Nationals candidate in 2014.

But he ran last year as an independent after quitting the Nationals, citing family, mental health and gambling issues.

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The Nationals last year called in police to investigate whether $8000 had been siphoned from a Morwell party branch bank account.

The money was allegedly taken before being replaced, and later picked up by auditors.

The Herald Sun believes that key players in the investigation provided statements to police in recent weeks.

Mr Northe did not return calls from the Herald Sun.

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