QUEENSLAND'S Liberal National Party will try to claw back funds raised by expelled federal MP Michael Johnson.
The LNP sought legal advice on whether it had a claim on electoral-related accounts held by Mr Johnson, as well as cash raised by the not-for-profit organisation he founded to fund his international travel.
While the funds of Mr Johnson's Australia China Development Association were determined by the LNP's lawyers to be off-limits to the party, president Bruce McIver said yesterday other accounts identified as being associated with the member for the electorate of Ryan, in Brisbane's west, would be targeted.
"We'll be looking to take over all LNP funds," Mr McIver said. But he said the LNP would not be referring the fund-raising irregularities that caused it to dump the three-term MP from his marginal Brisbane seat to the police or other agencies.
The merged conservative party was "drawing a line in the sand and moving on", though it would co-operate with authorities if needed.
Tony Abbott expressed regret yesterday that Mr Johnson had been shown the door.
"I feel sorry for Michael but he's done the wrong thing by the Liberal National Party and he's paid an appropriate price," the Opposition Leader said.
The LNP executive expelled Mr Johnson on Thursday after finding he had brought the party into disrepute and engaged in "conduct severely harmful" to its best interests. This followed revelations by The Australian that Mr Johnson had tried to gain a $12m commission for brokering a coal export deal in 2008.
Mr McIver rejected Mr Johnson's claim he would "easily win" a legal challenge against his expulsion on the basis that some executive members were absent from Thursday's meeting. He said the meeting was legally constituted.
The ACDA was set up by Mr Johnson five years ago to encourage economic co-operation between the two nations and has funded some of his extensive overseas travel. Funding came from donations or commissions he brokered for introducing business leaders and making deals, a practice he has described as "unorthodox but legal".
Accountancy firm CKG Partners, which did the books for the association at its Asian Business section in Brisbane, yesterday said it was no longer the registered office or the client of ACDA.
Labor sources acknowledge Mr Johnson has a strong personal following in his suburban seat, and say privately he could still poll in double figures as an independent. This improves Labor's strong changes of taking the once blue-ribbon conservative seat, now held by Mr Johnson with a slender 1.1 per cent margin, and will put enormous pressure on the LNP candidate who replaces him.
Brisbane City Councillor Jane Prentice is considered the LNP's frontrunner for now.
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