ANOTHER POLITICIAN ‘S MISUSE OF TAXPAYERS FUNDS REVEALED

DISGRACED federal MP Michael Johnson denies the existence of a secret slush fund but is unable to explain why a term deposit used to accrue interest on political donations appears to have transferred $125,000 more to his campaign than he deposited.

The Liberal National Party is demanding Mr Johnson, who was expelled as a member last week over his extra-parliamentary affairs and misuse of taxpayer-funded resources, hand over the contents of two bank accounts, all electorate assets and answer questions regarding the term deposit.

The LNP's long-running audit of the Michael Andrew Johnson Re-election Account, which contained political donations but was separate from his normal electorate account, found numerous transfers to and from a Bank of Queensland term deposit over a period of several years.

The audit found there had been $125,000 more transferred back to the re-election account than had been sent across during the period, suggesting the term deposit held at least that additional amount, possibly more.

Last night, Mr Johnson would not be drawn on the irregularity. He said the term deposit was opened before the Liberals' 2008 merger with the Nationals, when "most, if not all, the Liberal members had separate bank accounts".

"It was not secret because everything was audited and declared to the AEC (Australian Electoral Commission)," Mr Johnson said in an email. He added that the term deposit had since been closed.

Sources revealed that Mr Johnson, using his parliamentary email and electorate office staff, had unsuccessfully sought to negotiate a coal export deal he hoped would generate a commission of $12 million or more.

The third-term MP later claimed the commission would have gone to the Australia China Development Association, which funds Mr Johnson's extensive overseas travel and the forums he hosts, and not him personally. He insisted his global networking activities set a good example for other politicians.

The LNP state executive took a dim view of his use of taxpayer resources for the coal negotiations and the forums his electorate staff helped organise. He was expelled from the LNP on Thursday and will recontest the seat of Ryan as an independent.

The LNP state executive did not address other allegations against Mr Johnson, specifically that 71 payments from the re-election account were personal in nature and another 345 were inappropriate.

The Australian revealed online last Thursday that Mr Johnson had used the re-election account to take a trip to Islamabad, repay $1234 in taxpayer-funded travel expenses, and buy a scooter and thousands of dollars of electronic and kitchen equipment now sought by the LNP.

Mr Johnson, who has denied any wrongdoing, yesterday declined to release his written defence to the allegations, saying he wanted to move on.

Mr Johnson said the people of Ryan - "not the unelected faceless and nameless LNP state executives" - would decide whether he was re-elected.