Secret report says ‘broke’ Victorian Liberal Party is fast running out of money
A SECRET document has revealed cash-strapped Victorian Liberal Party is millions of dollars in debt and set to run out of money within months.
VIC News
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A SECRET document has revealed the Victorian Liberal Party is millions of dollars in debt and set to run out of money within months.
The Herald Sun has obtained the a presentation given to the Liberals’ administrative committee last week showing the party has gone from $1 million in the bank three years to a cash deficit of $1.78 million at the end of June.
The document projects the party will be $3.8 million in the red at the end of this financial year. The analysis was compiled by individuals within the party and based on bank statements.
It was not an official party review of the current financial situation.
The revelation comes after NAB rejected an application to increase the Victorian Liberals $2 million mortgage on its headquarters at 104 Exhibition St.
Instead, the party has been forced to borrow $500,000 against its share portfolio — which will be exhausted in about six months.
The grim financial position has led to concerns among state MPs that money which should be quarantined for next year’s state election is instead being used to pay wages and keep the lights on.
The document said the party would have to sell its headquarters — worth an estimated $20 million — to “restore solvency” if it cannot fix its feud with its biggest donor, the Cormack Foundation.
The rapid decline in the party’s coffers includes the period under former president Tony Snell and former state director Damien Mantach, prior to the current administration of current Victorian president Michael Kroger and state director Simon Frost.
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Mantach was subsequently jailed for the theft of $1.5 million, however the party has recouped more than $535,000 from through the sale of shares he bought with money stolen during his tenure.
One senior party source told the Herald Sun today the presentation was “profoundly ignorant” and “deliberately produced to be leaked to the media”.
Mr Frost said today: “Although the presentation was made with good intentions, it was not entirely accurate and didn’t not take into account the full finances of the party.”