Guy facing IBAC probe after VEC refers donor scandal to watchdog

Opposition Leader Matthew Guy will go to next week’s state election with the prospect of an anti-corruption investigation into alleged illegality hanging over his head after a Liberal donor scandal was referred to the Independent Broad-based Anti-corruption Commission.

Victorian Electoral Commissioner Warwick Gately said on Thursday that his commission had exhausted attempts to fully investigate Guy and his former chief of staff, Mitch Catlin, and had referred potential breaches of Victoria’s donation disclosure laws to IBAC.

Guy said he has done nothing wrong and is more than happy to co-operate, but walked out of a heated press conference in Morwell while journalists were still questioning him about the investigation.

While Guy earlier this week said the electoral commission was not investigating illegality, Gately confirmed on Thursday that the VEC was looking at potential breaches of the law.

The news came on the same day the Liberals referred Labor and so-called “preference whisperer” Glenn Druery to IBAC over leaked video of Druery discussing how the state’s voting system for the upper house was manipulated.

Guy and the opposition’s attempts to campaign on the integrity of Premier Daniel Andrews over the extent of his involvement in several IBAC inquiries have been neutered by the Catlin saga.

But a bullish Guy said on Thursday that his referral to IBAC paled in comparison to the inquiries that Labor has faced, which he described as “unprecedented”.

“I say to Victorians, you do have a choice, because this government with active investigations into their conduct, it’s a very, very big difference.”

Andrew said the anti-corruption referral was “a matter between Mr Guy and IBAC”.

The VEC for three months examined whether political donation laws were breached when Catlin requested a wealthy Liberal donor make more than $100,000 in payments to his private marketing business. Catlin resigned from Guy’s office after The Age revealed details of the proposed contract, which was never executed.

Two sources familiar with the Liberal Party’s legal approach this week told The Age the party had used a legal loophole to delay the investigation, by requesting a review of the VEC’s orders to hand over documents. Guy rejected those reports.

Gately claimed the review had not received “full co-operation” from the relevant parties, “despite public statements to the contrary”.

The VEC did not state why it was unable to finalise the Catlin investigation, however IBAC has more coercive powers than the electoral commission.

Guy earlier this week said he had provided all relevant information and co-operated fully, a stance he repeated on Thursday.

“I provided all information I had weeks and weeks and weeks ago,” Guy said. “When I’m asked for information, I provide every bit of it. That sounds to me like I’m co-operating quite fulsomely, and I am ... If other people associated with that [investigation] haven’t [co-operated], then that’s not a question for me.”

Asked again about the VEC’s comment that it had not received full co-operation, Guy said journalists would have to ask the electoral commission to explain its statement.

“I can’t answer on behalf of the electoral commission, you’ll have to ask them.”

Gately said the VEC was not in a position to allege wrongdoing, but the possibility of offences against the Electoral Act had not been discounted either.

“We became aware of suggestions Mr Catlin was alleged to have tried to circumvent donation disclosure laws,” Gately said in a statement.

“It’s my responsibility to ensure compliance with all electoral laws and ensure all participants are held to the same standard.”

Guy said he had not read the statement in depth, and later clarified in a terse exchange with reporters: “It’s not terribly long, and I did read it, and I looked at it, and it doesn’t require two hours of study.”

Minister for Government Services Danny Pearson on Thursday said Guy had to answer whether anyone in the opposition had been paid by an undeclared source.

Guy has repeatedly said that has not occurred. The draft contract to pay Catlin was not executed.

Catlin described the scheme as an “agreement” in a leaked email sent to Guy’s Hotmail account, which The Age revealed in August.

A spokesperson for the anti-corruption watchdog said it did not comment on complaints or investigations before it.

“IBAC communicates its decision [to investigate or not] directly with all complainants and notifying bodies.”

The VEC said it would not provide further comment now that the matter had been referred to IBAC.

A second VEC investigation involving the Liberal Party, examining anonymous donations made for a “Ditch Dan” fundraising event in August, has been delayed until after the November 26 election.

Dr Catherine Williams, research director for the Centre for Public Integrity, said the VEC needed the power to investigate alleged breaches of the Electoral Act.

“If the VEC is finding that it doesn’t have the powers it needs to determine whether there has been a breach of the legislation it administers, we need to be considering how to rectify that,” Williams said.

Guy was in Morwell on Thursday promising to establish a dedicated new department for regional Victoria if elected, which would be based in the Latrobe Valley.

On the campaign trail, Andrews also committed $67 million for three new mental health clinics, and another $10 million to plan 20 others across Victoria.

With Lachlan Abbott

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.