Victoria police launch criminal probe into Labor ‘Red Shirt Rorts’

As police launch an investigation into Labor’s ‘Red Shirt Rorts’, Matthew Guy says ministers who took part must step aside.

Daniel Andrews, Premiere of Victoria. Picture: Chloe Smith.

Victoria Police have launched a criminal investigation into Victorian Labor’s so-called Red Shirt Rorts in a major pre-election blow to the Andrews government.

Victoria Police today confirmed it had tasked its Fraud and Extortion squad to conduct the investigation into Victorian Labor, and its alleged misuse of more than $388,000 in parliamentary funds ahead of the November 2014 election.

In a statement to media, the police confirmed that a second assessment of evidence on the scheme, which has been dubbed the “Red Shirt Rorts”, revealed grounds for a criminal investigation.

“Victoria Police undertook reassessment of the material in relation to allegations of misuse of parliamentary budget entitlements to determine if further investigation was required.

“This assessment has now been completed and a formal investigation will now be conducted by the Fraud and Extortion Squad,” a police statement read.

“As this is an active and ongoing investigation, it would not be appropriate to provide further comment at this time.”

The Victorian Ombudsman found in March that Labor had rorted more than $388,000 by using parliamentary staff allowances to pay staff who were working full time as ALP campaigners.

A government inquiry into the issue heard just two days from senior government minister Gavin Jennings that all Labor MPs were briefed on the scheme during a caucus retreat in 2013.

The Ombudsman’s report named twelve Andrews government ministers who were still currently sitting, who had either taken part in, or benefited from the scheme.

Current ministers who gave up electorate officers to work as campaigners included Attorney General Martin Pakula, Sports and Tourism Minister John Eren, Corrections Minister Gayle Tierney, Youth Affairs Minister Jenny Mikakos, Special Minister of State Gavin Jennings and Environment Minister Lily D’Ambrosio.

Current ministers to have benefited from campaigners working in their offices included Transport Minister Jacinta Allan, Planning Minister Richard Wynne, Police Minister Lisa Neville, Deputy Premier James Merlino, Roads Minister Luke Donnellan and Housing and Disability Minister Martin Foley.

A government spokesperson said they wouldn’t be responding to news of the investigation today.

“It’s in no way appropriate to comment on these matters,” the spokesman said.

The government has also insisted that it will fully cooperate with the investigation and that no MPs will be standing down.

.@MatthewGuyMP: There's no line this premier won't cross. A government rots from the head; it's rotting from the head in Victoria. Victorians deserve better; a hell of a lot better than they're getting from this crooked, rotten government.

MORE: https://t.co/iJCLBeLOsV #newsday pic.twitter.com/REMyuySBuZ

— Sky News Australia (@SkyNewsAust) July 27, 2018

The Red Shirts issue has dogged Premier Daniel Andrews for almost three years, and remains a high profile distraction for the party as the November election nears.

The Andrews government have repeatedly denied Premier Andrews had any awareness of how the scheme operated, or that it “crossed a line”, in parliamentary standards.

Victoria Police declined to comment on whether the decision to proceed with the investigation had been influenced by revelations aired in front of the committee.

Stopped as he entered parliament, senior Labor minister Phillip Dalidakis declined to comment, citing his involvement with Privileges Committee and a desire not to interfere with the criminal investigation.

Opposition Leader Matthew Guy said government ministers who took part in the scheme had no choice but to step aside, calling them to stand down by the close of business.

A motion calling on all six ministers named in the Ombudsman’s report is set to be debated this afternoon in the Legislative Council.

“There’s no line this Premier won’t cross,” Mr Guy said.

“A government rots from the head; it’s rotting from the head in Victoria. Victorians deserve better; a hell of a lot better than they’re getting from this crooked, rotten government.”

The probe comes less than four months before the next state poll at which Labor will try to hold government.

Chief Commissioner Graham Ashton last week told parliament’s powerful privileges committee that police were looking at evidence relating to the scheme and a decision was “imminent”.

The matter was referred to police in 2015 and the force the next year decided not to investigate following legal advice.

.@MatthewGuyMP: No taxpayer's money should be spent defending any of these Labor MPs. The red-shirts-rort was not a post-election experience, it was pre. It beggars belief they have not stood aside while they're being investigated.

MORE: https://t.co/iJCLBeLOsV #newsday pic.twitter.com/NmbRYdORKz

— Sky News Australia (@SkyNewsAust) July 27, 2018

Ombudsman Deborah Glass found 21 past and present Labor MPs systematically misused public money during the party’s successful 2014 election campaign

Mr Ashton said charges which could flow from an investigation included making false documents, conspiracy of fraud and a common law charge of mistreating the public office.

The fraud and extortion squad was called after a letter of complaint sent by upper house Liberal MP Edward O’Donohue.

Victorians are going to the polls on November 24.

- with AAP