Hinch hammers Hanson over her use of AEC election funds

Crossbencher Derryn Hinch has hit out at Pauline Hanson’s handling of taxpayer-funded election returns.

Justice Party federal senator Derryn Hinch.

Crossbencher Derryn Hinch has hit out at Pauline Hanson’s handling of taxpayer-funded election returns, saying a parliamentary inquiry into political donations could be widened to consider the accountability implications.

The Weekend Australian revealed how Senator Hanson in 2008 had seized control of most proceeds of a $213,000 payment from the Australian Electoral Commission, and sacked office-bearers of the then Pauline’s United Australia Party who protested.

Ousted PUAP treasurer Graham McDonald said he had told Senator Hanson she had no right to transfer the money out of the main party account but was rebuffed. By his account, she insisted she had legal advice affirming her right to the funds.

Senator Hanson refused to respond to written requests to detail what happened to the money after PUAP folded in 2010, having contested only the 2007 federal election. She was not available yesterday and her spokesman again failed to return calls.

Weighing in to the row, Senator Hinch questioned the AEC’s hands-off policy on election returns once the money was paid to a party or candidate that reached the 4 per cent threshold of the first-preference vote jurisdiction-wide.

The commission says it has no power under the Electoral Act to police what parties do with the cash. “My belief is that … it’s party money … to be used for party ­issues, party printing, billboards or whatever,” he said.

Pauline Hanson’s One Nation party banked a return of $1.62 million from the AEC, based on the vote that propelled Senator Hanson and three other PHON candidates into parliament’s upper house in July’s federal election.

Derryn Hinch’s Justice Party pulled $544,420. Senator Hinch said the money went to repaying candidates for nomination fees and campaign expenses, and meeting the general election expenses of the party. He had not yet been repaid for a $50,000 mortgage he took to cover his costs.

“Nothing One Nation does when it has a dollar sign in front of it would surprise me. Leopards don’t change their spots,” he said.

Senator Hinch said the inquiry into political donations by the joint standing committee on electoral matters could look at the accountability issue, and the disparity between federal and state systems for settling election refunds.