Redcliffe MP Scott Driscoll
Redcliffe MP Scott Driscoll

Organisation linked to Driscoll to be heard over debt issue

THE taxpayer-funded organisation tied to dumped LNP MP Scott Driscoll will appoint a liquidator due to mounting debt.

Documents seeking to wind up the Regional Community Association of Moreton Bay have been lodged in the Supreme Court and the application is expected to be heard on Wednesday.

The not-for-profit organisation has been at the centre of accusations that Redcliffe MP Scott Driscoll was secretly running the body and directing money into his wife's business.

Mr Driscoll has strongly denied claims he allowed $120,000 to be paid in consultancy fees from the association to his wife's company, Nosefire.

Following a request from Premier Campbell Newman last week, the LNP suspended Mr Driscoll from the party until several investigations into the misconduct allegations were resolved.

Mr Driscoll now sits on the backbench.

Communities Minister Tracy Davis announced last week her department had activated a "contingency plan" to keep up the services that RCAMB provides because the Redcliffe-based group was facing severe financial difficulties.

Opposition leader Annastacia Palaszczuk said Ms Davis was not doing enough.

"On Good Friday, I called on the minister to return from holidays and sort out what everyone else could see was a looming problem," she said.

"She had the power to order a forensic audit of the association but when everyone else could hear the alarm bells ringing she did nothing.

"Either the minister shapes up and starts to take a hands-on approach to this problem or she should go and make way for someone who is willing to do that."

But Ms Davis hit back, saying the government had already appointed an auditor.

"Likewise, it was this Government which referred complaints to the CMC for investigation in November.

"Whilst Ms Palaszczuk has had her head buried in the sand, this government has been getting on with the job of ensuring there is greater accountability around the use of taxpayer funds."