Premier Denis Napthine has been unable to shake controversy surrounding his decision to spruik once-disgraced bookmaker Rob Waterhouse, and his involvement in a Liberal Party fund-raiser headlined by Gai Waterhouse at next week's Warrnambool races.
The Premier has vehemently denied there is a conflict of interest in him supporting Mr Waterhouse to work in the betting ring - he is allowed to work elsewhere at the event - and the fact Ms Waterhouse is the star attraction along with Dr Napthine at a Liberal Party branch fund-raiser next Wednesday night.
On Thursday Dr Napthine said the $100-a-head event had been arranged by a third party. The Premier's office said the third party was "a racing enthusiast".
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It is understood that Tim Auld, a racing columnist for The Standard, approached Dr Napthine at last year's Spring Racing Carnival saying that he thought Ms Waterhouse would be interested in appearing at a function for the Premier during the Warrnambool carnival as she was going to be in town.
The Premier said yes and Mr Auld later confirmed the event.
It is understood that at no point did the Premier make contact with either of the Waterhouses, nor did any of his staff.
But on Wednesday Dr Napthine, who is also Racing Minister and Warrnambool's MP, said Ms Waterhouse offered to participate in an event for him.
"She offered to participate in an event for me and also to raise money for local charities," he said on Wednesday. "I helped to facilitate that, and we look forward to having a great event."
Ms Waterhouse was reported by News Limited as saying: “Denis asked, and we said we can help."
But on Thursday, Ms Waterhouse told Fairfax Media she could not remember who had arranged the event.
“I am there to talk and that’s the main thing," Ms Waterhouse said. "I’m flying the flag and it makes no difference how it happened."
She also said she did not know if her family had ever donated to the Liberal Party.
"I’m not very political, I don’t remember,'' she said.
The event was first announced late last October. The local paper, The Standard, said Dr Napthine had secured Ms Waterhouse for the function.
“I’m grateful for Gai and her husband Robbie that they have indicated they will be at the fund-raiser,’’ Dr Napthine said in October.
Despite the event being solely advertised as a Liberal fund-raiser, Dr Napthine announced on Wednesday that some proceeds would go towards charity Peter's Project. He said that announcement was a secret they wished to announce on the night.
Opposition Leader Daniel Andrews said Dr Napthine had not provided an accurate, full or frank account of the establishment of the fund-raiser.
“He is like a child, a child that has been caught out," Mr Andrews said. "His story just keeps on changing, from doorstop to doorstop we get a different version of the truth according to [the] embattled Premier. He can’t get his story straight on favours for mates in the racing industry.’’
Dr Napthine initially made the comments backing Mr Waterhouse - who was banned from bookmaking for 14 years over his role in the Fine Cotton ring-in affair - to The Standard, saying the colourful bookie would encourage people to attend the event and bet with bookmakers rather than online betting agencies.
One of the impediments on Mr Waterhouse's access to the carnival is the meeting's status with Racing Victoria. The organisation has indicated it is open to discussions with Warrnambool Racing Club and bookmakers about upgrading the bookmaking status of the 2015 carnival to that of metropolitan meetings.
Mr Waterhouse said it was unlikely the couple would return to the carnival in 2015 if he did not get a prime position next year.
