Victorian Liberal Party resolves dispute with Cormack Foundation, wins election cash boost

THE Victorian Liberal Party has locked in a massive $2.5 million windfall on the eve of the state election after finally ending its war with its biggest political donor.

THE Victorian Liberal Party has locked in a massive $2.5 million windfall on the eve of the state election after finally ending its war with its biggest political donor.

The Cormack Foundation will deliver the cash to help bankroll the party’s campaign, ending months of uncertainty which included a Federal Court fight.

FORMER PREMIERS DENOUNCE CORMACK DISASTER

Cormack has also agreed to deliver $3 million to the Victorian Liberals for next year’s federal election, and another $3 million for the following federal election as well.

The Herald Sun understands new federal Treasurer Josh Frydenberg played a crucial role leading negotiations over the last three weeks, convincing both sides to make concessions to resolve the bitter dispute.

Victorian Liberal president Michael Kroger said the deal included former prime minister John Howard and former federal Liberal president Richard Alston joining the Cormack board.

Victorian Liberal president Michael Kroger. Picture: Joel Carrett/AAP

A Cormack spokesman said the agreement “provides an end to the hostilities”.

“It confirms Cormack’s independence and it gives Cormack the leverage to ensure that the Victorian Liberal Party’s governance and financial controls are modernised,” he said.

Mr Kroger told Liberal members the ceasefire meant no more legal action would be taken against Cormack.

An external assessment has also been ordered into the party’s internal procedural changes made in the wake of revelations former state director Damien Mantach stole $1.5 million from Liberal coffers.

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