May 19, 2010

Liberal Party crisis: Abbott backflips over Queensland MP Michael Johnson embroiled in China deal

ABC.net.au

TONY Abbott has refused to publicly back Queensland Liberal Michael Johnson, who tried to broker a Chinese coal deal to collect a commission - money the MP today insisted was not for him.

Speaking at a quarry on Brisbane's eastern outskirts, where he was discussing the resources profits tax, the federal Opposition Leader repeatedly said Mr Johnson's fate was in the hands of the Liberal Party administration.

"It's a matter for the Liberal National Party (in Queensland) and I'm confident they'll handle it appropriately," Mr Abbott said.

Mr Abbott only recently publicly supported Mr Johnson, and in seeking to explain himself this morning Mr Johnson was keen to point to Mr Abbott's own admission that the Liberal leader could be careless with his choice of words.

On radio this morning Mr Johnson admitted seeking a commission for brokering a Chinese resources deal, but insisted the money was not for him but rather for a not-for-profit organisation.

The Australian this morning exclusively revealed that Mr Johnson, who holds the marginal seat of Ryan in Brisbane's leafy inner-western suburbs, tried to negotiate a coal export deal between a Queensland coal company and a Chinese conglomerate in September 2008.

Emails and attachments seen by The Australian showed that Mr Johnson had travelled to Singapore in September 2008, a trip funded by the Australia China Development Association.

Mr Johnson is proud of his connection with the association - which funds the Australia China Business Forum that he founded and chairs, as well as his frequent overseas trips.

It was in Singapore that Mr Johnson met a Swiss associate and, separately, the parties between which he later tried to broker the export deal.

The deal did not eventuate.

The MP is under investigation by Queensland's Liberal National Party and is expected to meet with the party's executive in Brisbane tomorrow.

The Australian's Sean Parnell attempted to contact Mr Johnson yesterday to give the MP right of reply, and spoke to him at his Brisbane home this morning.

But Mr Johnson refused to comment to The Australian, instead choosing to explain his "side of the story" to ABC Local Radio presenter Madonna King this morning.

Mr Johnson said he would not have received any personal financial benefit from the deal.

"There was no intention whatsoever, there never was, for me personally to be a beneficiary of it," he said.

"I have, in my role as chairman of the Australia China Business Forum, obviously tried to gain support for the forum, to find corporate sponsors, individual sponsors."

Mr Johnson said any financial benefit would have been directed to the Australia China Business Forum to "allow it to conduct its activities".

"I would have received not one single cent, not one red cent," he said.

He said neither the forum nor the association had ever made a politicial donation to him.

Mr Johnson accused the LNP of leaking the emails, without first seeking an explanation from him.

"I'm terribly disappointed at the LNP for this kind of personal attack upon me," he said.

At first, Mr Johnson appeared to deny the existence of "emails of this type", but later in the interview admitted that the emails existed and could have been misinterpreted so that it appeared he was seeking a personal commission.

Mr Johnson said that if he had his time again, he would perhaps have changed the wording of the emails.

"I would have made specific reference to any financial benefit being for the Australian China Business Forum," he said.

"There is equally no reference in any email to Michael Johnson's bank account."