IBAC: Ex-Victorian Labor minister Theo Theophanous’ ‘improper’ lobbying on $31bn project

Theo Theophanous took donations from a company for his daughter’s Victorian election campaign to lean on ministers and public officials, IBAC says.

Theo Theophanous.

The Andrews government has sought to distance itself from a damning corruption watchdog report which found a former Labor minister improperly lobbied in favour of a company that made a $10,000 donation to his daughter’s state election campaign.

The Independent Broad-Based Anti-Corruption Commission found Theo Theophanous leant on government ministers and public officials to support the Australian Education City’s failed proposal for a $31bn education, residential and employment precinct in Melbourne’s outer southwest, while he was also a board member of the Victorian Planning Authority between February 2018 and May 2019.

In response to the report, ­tabled in parliament on Wednesday, a spokeswoman for the government said the allegations about Mr Theophanous’s conduct were “extremely serious”.

“The allegations revealed as part of Operation Clara are damning and go to the judgment of Mr Theophanous,” she said.

“All members of government boards are required to declare any conflicts of interest and not use their board positions for personal advantage.”

Mr Theophanous was forced to quit the planning authority’s board about a week ago and, after the IBAC report was published, also resigned from his position as a board member of the State of Trustees on Wednesday.

Curiously, given Mr Theophanous was a minister in the Kirner, Bracks and Brumby Labor governments, the spokeswoman claimed the IBAC report “made no adverse findings against any current or past government ministers or MPs”.

According to the report, Mr Theophanous “contacted ministers, ministerial advisers, and departmental officers … in a manner consistent with the definition of ‘lobbying’ ” despite failing to register the consortium as a client of his Embark Worldwide firm or declare it with the planning authority. The AEC said it would not formally engage Mr Theophanous as a lobbyist unless he could provide a letter from the planning authority declaring it wouldn't amount to a conflict of interest.

Labor MP Kat Theophanous.

“AEC representatives … confirmed Mr Theophanous did not provide written assurance from the VPA, and that as a result (he) was not formally appointed as an AEC lobbyist,” the IBAC report read. “However, they continued to engage with Mr Theophanous to progress the East Werribee project.”

In their evidence to IBAC, two AEC representatives agreed they treated Mr Theophanous like a lobbyist who “just couldn’t be paid”.

The anti-corruption investigation did not identify any direct payments from the AEC to Mr Theophanous, but said he “indirectly” benefited from the partnership because the company made a $10,000 donation to his daughter’s state election campaign in 2018.

As well, they provided in kind donations to Kat Theophanous’ successful tilt at the seat of Northcote including 250 phone calls to Chinese-speaking constituents, translation of a letter with a Chinese salutation and people to hand out how-to-vote cards at pre-poll booths.

Ms Theophanous was unaware of the donations of her father’s relationship with the AEC, the report stated.

She was re-elected to the seat of Northcote last year.