Victorian minister Danny Pearson apologises for bank shares ‘oversight’

Victoria’s Assistant Treasurer says he will place all shareholdings in a blind trust after The Australian revealed he held Commonwealth Bank shares in 2021 when awarding it a contract.

Victorian Assistant Treasurer Danny Pearson. Picture NCA NewsWire / Aaron Francis

Victoria’s Assistant Treasurer says he will place all his shareholdings in a blind trust, after The Australian revealed he held Commonwealth Bank shares when he awarded a contract to the bank in 2021.

Danny Pearson has apologised “unreservedly” for the “oversight” saying he accepts it was an “error of judgment” not to recognise the “potential for a perception of conflict of interest.”

State parliament’s register of interests shows Mr Pearson has held the shares since entering parliament in 2014, meaning he held them when he announced a new three-bank panel to deliver Victoria’s banking and financial services in August 2021.

The new arrangement, including the Commonwealth Bank, Westpac and NAB, replaced a contract with Westpac which had been worth an estimated $120m a year.

In a statement issued ahead of state parliament sitting on Tuesday morning, Mr Pearson said: “Yesterday, it was brought to my attention that a long standing shareholding - that I have declared to the Parliament at every reporting period since becoming an MP - may have given rise to questions about a potential for a perceived conflict of interest with my ministerial duties.”

“For completeness, I confirm that I was not a decision maker in the awarding of the banking and financial services contract in 2021,” Mr Pearson said.

“The process was run by senior independent public servants and there was a probity auditor engaged throughout who signed off on the process. I noted the outcome of the tender once it had been determined by the Department of Treasury and Finance.

“Despite this, I accept that it was an error of judgement to not recognise and manage the potential for a perception of conflict of interest and I unreservedly apologise for this oversight.

“For avoidance of doubt, I have spoken to the Premier and advised him that I will place all of my shareholdings in a blind trust.”

The revelation comes after NSW Liberal Damien Tudehope was forced to resign on Friday, after it was revealed he had failed to disclose his family’s superannuation portfolio included shares in toll road giant Transurban, which owns the majority of Sydney and Melbourne’s toll roads.

Victorian Treasurer Tim ­Pallas divested himself of an ASX top 20 share portfolio in 2019, after The Australian revealed it included shares in Transurban. The company stands to make $37.3bn in extra tolls from Victorian ­motorists in exchange for investing $4bn in the Andrews government’s West Gate Tunnel, under a deal personally brokered by Mr Pallas.

Asked on Monday whether it had been appropriate for Mr ­Pallas to remain in his job, given the parallels with Mr Tudehope’s situation, Deputy Premier Jacinta Allan said she had no comment to make “on matters that happened some years ago”.

“Those matters were addressed at the time, and I’ve got nothing further to add to a matter that occurred many, many years ago,” Ms Allan said of the 2019 events.

Asked whether the matters ­remained relevant, given the ­billions of dollars Victorians are set to pay until 2050 under the deal reached by Mr Pallas for the building of a road project that is yet to be completed, Ms Allan ­repeated: “That matter was addressed some years ago when these matters were first raised. They have been dealt with, addressed, and I have absolutely no further comment to make.”

Opposition finance spokeswoman Jess Wilson said Mr ­Pearson had a “serious conflict of interest” with his Commonwealth Bank shares.

“The Victorian public deserve straight answers today,” Ms Wilson said.

“Danny Pearson must justify this blatant conflict of interest to the Victorian community.

“We have recently seen the ­results of similar conflicts of interest arising interstate, and the onus is now on Danny Pearson to ­explain why he deserves to keep his job. Victorians expect their elected representatives and government ministers to act with the highest integrity and to ensure that their conduct is beyond ­reproach.”