John Lenders goes, Daniel Andrews exposed

Daniel Andrews and John Lenders in 2008. Picture: Lyndon Mechielsen

John Lenders reluctantly sacked himself from the committee for the re-election of the Premier.

Shortly after The Australian published an online comment piece calling on him to jump from the election taskforce, the former Labor treasurer finally conceded the “red shirts” scandal would probably never be over and he jumped.

In doing so, Lenders — the mastermind of the Labor 2014 “red shirts” rort — hoped to save Daniel Andrews from ongoing controversy over his role on the committee.

But his decision to quit also leaves the premier exposed on the emerging election issue of integrity and yesterday’s dramatic developments raise this question; Just how genuine is his commitment to cleaning up Labor in the wake of last week’s damning integrity reports?

It’s reasonable to ask, given that on Tuesday morning, Andrews was still backing Lenders and made it clear he had no intention of pushing him off the committee.

“I have known John a long time and he is somebody that I respect,” he said, before deflecting further questions to the Victorian ALP.

To understand just how brazen the Premier’s support for Lenders was, it is important to revisit Ombudsman Deborah Glass’ 2018 report.

Lenders, she found, was the architect of an “artifice” that saw at least $388,000 looted from taxpayers to fund ALP red shirt campaigners in the 2014 election.

Lenders, she found, “crossed the line” in recruiting 21 Labor MPs to divert money from electorate officers to bankroll the red shirt campaigners.

Lenders, she found, carried the “the greatest share of culpability” in the ‘red shirts’ rort and as “a senior member of parliament, former minister and treasurer, and leader of the government in the Legislative Council, he should have known better”.

Ms Glass went on:

“He sought advice from DPS (the Department of Parliamentary Services) but did not take it, yet his involvement and personal stature would have been instrumental in giving credibility to the scheme.”

Yet, for four years since that report was tabled in parliament, and the ALP repaid the $388,000, Andrews has been content to keep Lenders on the election committee.

A fresh ombudsman’s report into the ‘red shirts’ rort is expected to be released in the coming weeks. One of the issues it will look at is a brief but significant exchange between Andrews and dumped Labor minister Adem Somyurek in 2014.

Somyurek claims he warned the then opposition leader about the misuse of public funds on the red shirts. Andrews denies this. After the release of the ombudsman’s first report, Andrews said: “You’ve just asked me, ‘did I have a conversation.’ Did people raise these matters to me? And I’ve indicated to you I don’t believe so.”

Labor MPs privately recall when Lenders lent on them to sign up to red shirts. Some refused. At least 21 signed on. (the true figure could be much higher, as Lower House Labor MPs refused to cooperate with the ombudsman).

For years, some caucus members have quietly speculated about whether Lenders was the type to rattle the red shirts tin without the approval, or at least knowledge, of a higher authority. Many agree this is unlikely.

By offering his support to Lenders on Tuesday to remain on the committee that will lead his bid to win a historic third term in office, Andrews has made it clear that he wants to keep Lenders in the tent.

One day the Premier says he’s committed to cleaning up Labor. But the next day he says he’s OK with the mastermind of the ‘red shirts’ rort to continue helping him get re-elected. The two positions are irreconcilable.

Remember, it was Lenders, the party loyalist, who called time acknowledging that little more than 100 days before the November 26 election the moment had come to neutralise himself.