Victorian Liberal Party’s in-house lawyer sensationally resigns

A key figure in the Victorian Liberal Party has sensationally resigned, claiming party leadership turned a blind eye to alleged criminal behaviour.

Matthew Guy’s Liberal Party is again under a cloud. Picture: Andrew Henshaw

The Victorian Liberal Party has lost another senior figure amid ongoing internal feuding that is threatening to derail its election campaign.

In-house lawyer Chandra Lloyd has resigned, claiming party leadership had turned a blind eye to alleged criminal behaviour.

Ms Lloyd accused the party of breaching electoral laws and routinely ignoring her advice on a range of issues.

In her resignation letter to party president Greg Mirabella, Ms Lloyd she was unable to continue working with state secretary Sam McQuestin.

“I have raised with you concerns regarding the operations of Secretariat, some of which have resulted in regulatory investigations that may be considered criminal in nature,” she wrote in her resignation email to Mr Mirabella on Monday night.

“I note that this afternoon you elected to take no action, and requested that I work with the State Director on my concerns.

“As I do not have the authority to rectify these matters myself, and noting that the matters involve multiple Directors at the Secretariat, I now tender my resignation ­effective immediately.”

The Liberal party’s state secretary Sam McQuestin.

The Herald Sun has spoken with several Liberal sources, who confirmed the party was now the subject of a fresh Victorian Electoral Commission probe over issues raised by Ms Lloyd.

They include concerns about the party’s infamous “Ditch Dan” donation drive and allegations postal vote applications had been illegally mailed out to constituents.

However, several senior party figures said they were confident the party had complied with all electoral laws.

“She clearly hasn’t seen eye to eye with McQuestin,” one source said.

“She’s left and tried to blow the place up on the way out. There doesn’t appear to be anything to the claims.”

One key campaign figure denied a string of resignations over the past two weeks had caused alarm just weeks out from the election campaign.

They said the resignations had instead offered the party a chance to get rid of dead wood and refocus ahead of the election.

“There’s a sense of optimism about the place on the back of some very strong policy announcements in recent weeks,” one source said.

Opposition Leader Matthew Guy has been widely praised this week for unveiling a bold pledge to slash public transport costs.

Opposition Leader Matthew Guy has had a bumpy lead-up to the election. Picture: David Geraghty

The policy was the first major announcement to tackle the cost-of-living crisis affecting Victorians.

However, other party sources said internal feuding within the party was problematic so close to the election.

“Chandra was very well regarded. Not necessarily a political person but someone that was across the legal and regulatory details,” one source said.

“This is a very concerning development for the Party at this stage of the cycle.

“Two weeks since the Presidential decree that saw staff cleared out for the new blood, where exactly are the new blood?

“Everyone is still waiting. No wonder Matthew and his office have cut the HQ out of their planning and strategy.”

Last week the Herald Sun revealed deputy state director Scott Samson was among a string of officers forced out of the party amid a major restructure.

Senior campaign adviser Ashley Mackinnon was demoted, while several electorate campaign officers were also booted.

It followed the resignation of Mr Guy’s chief of staff Mitch Catlin over revelations he asked a party donor to donate more than $100,000 to his private business.

The proposed contract would have seen Mr Catlin’s Catchy Media Marketing and Management company paid more than $8000 each month by the donor, in addition to his taxpayer-funded salary.

An email leak revealed the mooted arrangement, that is now under investigation by the VEC.