Fraud charges send Marshall government into minority

The Marshall government in SA has been plunged into crisis after Lib MP ­Fraser Ellis was charged with a string of offences relating to allegations of fraudulent allowance claims.

South Australian MP Fraser Ellis. Picture: Matt Loxton

The Marshall government in South Australia has been plunged into crisis after Liberal MP ­Fraser Ellis was charged with a string of offences relating to allegations of fraudulent allowance claims.

The Narungga MP, elected in 2018, resigned from the Liberal Party on Friday morning and left Steven Marshall leading a minority first-term government.

The state’s Independent Commission Against Corruption has run a long review of how country MPs claim accommodation allowance, with several forced to repay thousands of dollars.

ICAC commissioner Ann Vanstone QC said on Friday she had sent a brief of evidence to the Director of Public Prosecutions in December. The DPP charged Mr Ellis on Wednesday with 23 counts of deception relating to 78 fraudulent claims for the Country Members Accommodation Allowance totally more than $18,000.

While the allowance is available to MPs whose usual place of residence is more than 75km from Adelaide, and who have to stay in the city for parliamentary work, it is alleged Mr Ellis was claiming for nights he did not spend there.

In a dramatic late-night announcement in the parliament, Mr Ellis said he had “nothing to hide” and blamed “inexperience”.

Despite resigning from the party, he is expected to continue to provide support to the government from the crossbench.

“I am completely innocent and I’ll be vigorously defending these allegations to the full extent of my resources and the law,” he said.

“Any error in a claim form completed by a relatively inexperienced member was simply that — an error.”

The Premier said it would be difficult for Mr Ellis to run as a Liberal candidate in 2022. “You can’t be a candidate if you aren’t a member of the party and Fraser Ellis isn’t a member,” he said.

“He has made it clear that he will be suspending his membership of the Liberal Party.

“He is not a member of the Liberal Party. I’m just getting on with the important jobs that are in front of us at the moment.”

Labor leader Peter Malinauskas said it was a “stunning revelation”. “People are also rather alarmed about the fact that he’d informed the Premier and the Premier has said absolutely nothing about it, despite having opportunity to do so,” he said.

Three senior Liberals who ­resigned last year over the allowance scandal will face no further action after the ICAC cleared them — and six other MPs — in October. Former transport minister Stephan Knoll, former primary industries minister Tim Whetstone and government whip Adrian Pederick all stepped down amid the controversy in July.

Mr Knoll paid back about $30,000 and Mr Whetsone repaid $7000, which he said had been claimed in error.

They, and former upper house president Terry Stephens, all stepped down because of the ICAC inquiry that had begun under former commissioner Bruce Lander.

In October, the ICAC also dropped its inquiries in relation to Primary Industries Minister David Basham, Energy Minister Dan van Holst Pellekaan, and Liberal backbenchers Nick McBride and Peter Treloar.

Mr Ellis is expected to appear at the Adelaide Magistrates Court at the end of March.