Andrews government minister Danny Pearson questioned over bank accounts

Danny Pearson has faced questions about how he can remain in Daniel Andrews’ cabinet after he approved opening three government accounts with a bank in which he holds shares.

MELBOURNE, AUSTRALIA - NewsWire Photos FEBRUARY 22, 2023. VictoriaÕs Assistant Treasurer Danny Pearson speaks at a door stop at Victorian Parliament. Picture: NCA NewsWire / David Geraghty

Danny Pearson is facing questions over how he can remain in Daniel Andrews’ cabinet after conceding he approved the opening of three government bank accounts with Commonwealth Bank while holding up to $100,000 in CBA shares.

The Assistant Treasurer revealed in question time on Wednesday the accounts were “administrative accounts, opened by the Department of Treasury and Finance”, after The Australian confirmed his role in approving their opening.

The latest questions come after The Australian earlier this week revealed he held Telstra shares while minister responsible for signing off on a $120m telecommunications contract, and a fortnight ago reported he held CBA shares when he ­announced the awarding of a contract to the bank in 2021.

Mr Pearson also faced scrutiny in February when it was confirmed the government had shifted responsibility for an agency chaired by his wife, Nicole Marshall, from the Consumer ­Affairs portfolio he took over in December — where it had sat since 1998 — to the portfolio of Small Business Minister Natalie Suleyman.

The Labor minister has maintained he was not the decision-maker in awarding Telstra and 2021 CBA contracts, but merely “noted” the outcomes of independent tender processes administered by the Department of Treasury and Finance.

Asked on Tuesday whether they were the only contracts he had “noted” that related to companies in which he held shares, Mr Pearson said: “Yes.” On Wednesday, he was forced to admit that not only had further government business been conducted with companies in which he is a shareholder, but he had in fact approved and authorised opening of the three Commonwealth Bank accounts.

Asked for the details of the three bank accounts on his way into parliament, Mr Pearson said: “I need to get back to you on that one. The custom and practice is that if an entity wants to open up a new bank account, they need to seek the approval of the Assistant Treasurer. So that’s the formal practice, so I’ll get back to you on the specifics.”

Quizzed during Question Time by Opposition Leader John Pesutto, Mr Pearson confirmed: “Three accounts were opened. They were administrative accounts opened by the Department of Treasury and Finance.”

“I have always acted appropriately. I have always declared my interests. I have acknowledged that I committed an error of judgment. I indicated that I would establish a blind trust. The blind trust has been established. My register of members interests entry has been updated and been provided to the Clerk of the Parliaments as of Friday afternoon. I am happy for that register to be made available,” he said.

Asked by Mr Pesutto how he could “continue to sit around the cabinet table” having signed off on government bank accounts with a bank he owns shares in, Mr Pearson referred the Opposition Leader to his previous answers.

Last month, New South Wales Liberal MP Damien Tudehope resigned as finance minister after it was revealed he had failed to disclose Transurban shares held by his family’s superannuation account, having been involved in negotiations with the toll road giant on behalf of the government.

Asked why Mr Pearson should remain in his job given the parallels between his situation and that of Mr Tudehope, Premier Daniel Andrews said events in NSW were “a matter for the leader of that government, and I’m not sure whether circumstances there are comparable at all, actually.”

Asked what was different about Mr Tudehope’s situation, Mr Andrews said: “Well, I don’t know that minister. I’ve never met that minister. What I can say is, I know the Assistant Treasurer. He behaves appropriately at all times. He’s answered all these issues.”

A motion led by Liberal leader in the Legislative Council, Georgie Crozier, passed that chamber without dissent, calling for the government to table a series of departmental briefs given to Mr Pearson relating to the banking contracts and accounts by 3pm on Thursday.