The Victorian Division of the Liberal Party is at war. A full-on out-of-control non-civil war.
The conflict seems set to permanently weaken the leadership of current state Liberal leader Ted Baillieu with some insiders saying the tensions could lead to an unprecedented wave of party expulsions and disciplinary measures as Baillieu's supporters desperately attempt to stabilise a party in crisis.
THE LIBERALS' WORST NIGHTMARE: THREE MORE YEARS OF TED BAILLIEU
Rival sects within party ranks are accusing the party's most senior players of being involved in the creation of a website highly critical of Baillieu which was produced from Liberal Party HQ itself, by highly regarded senior officials John Osborn and deputy State Director Simon Morgan.
One highly placed party source concerned about the growing division in Liberal ranks because of Baillieu's leadership told the OC that this was "probably the worst internal crisis we've had in sixty years in the Victorian division".
A Baillieu supporter who preferred not to be named told the OC "We will find every last person involved in this disgrace and shame them out of the party."
THEY DID NOT ACT ALONE
The OC has learned that the two young men involved in the production of the site were not acting alone or without either the direction, instruction, encouragement or acquiescence of some of the Party's most senior operatives.
In the frame for sanctioning and condoning the site are two of its most senior figures from the Kroger/Costello faction which has traditionally been opposed to Baillieu's leadership:
■ Julian Sheezel, the retiring Liberal Party State Director and possible candidate for Higgins, who sometimes claims to be a mate of Baillieu, has been all but publicly accused by his former employees of authorising the anti Ted website; and
■ Tony Barry, the self-styled chief of staff to numbers-man Senator Michael Ronaldson, and also a sub-factional rival of Sheezel and close associate of both of the young gents involved in the production of the site.
Liberal insiders have explained that the truth about the identity of those involved spread from the 104 office itself to Simon Troeth at the Leader's office via the Ted Baillieu fan and state campaign director Susan Chandler. Troeth then insisted action be taken.
Some Liberal insiders told the OC that if the Party wanted to purge a leaker rather than folks engaged in commentary that they probably should start with Chandler who leaks like a mighty stream. Allegations against her, which are strongly denied by her friends who say she is strictly non-factional, include claims she released confidential information relating to State Council delegates and proxies to the David Davis/Baillieu faction. "Everyone on the Administrative Committee knows about it," said one disgusted observer.
It seems clear that Chandler didn't think it was appropriate to take her concerns about the anti-Ted site to Party director Julian Sheezel, for reasons that will become clear.
THE CASE AGAINST SHEEZEL
Liberal sources familiar with the inner workings of the Party Secretariat insist to the OC that "nothing goes out of 104 Exhibition Street without Julian Sheezel's express authority."
They say that they believe that the officials involved in the site would not have dared act so boldly and brazenly on their own, just metres away from Sheezel's all-seeing eyes. It is understood that practically all the website, including its graphics, were composed in full view of office colleagues on office computers and mostly during times when people were in the office.
They further explained that the third floor where the Party's headquarters operates from is an intimate and open-plan work environment, without partitioned offices where there are few secrets and little real likelihood that Sheezel could have avoided knowing about the site.
For the record, based on what the OC has learned today, we believe that Sheezel certainly knew about those behind the site, quite possibly directed it and only took action to stop it once he was told that Simon Troeth at Ted Baillieu's office was aware of who was involved in its production and that he insisted that decisive action be taken against those responsible.
In that context, Sheezel's actions in naming and shaming Osborn and Morgan as those exclusively responsible for the site are seen by many in the party in both its main factions as outrageous and cowardly. The OC understands that both Osborn and Morgan were intending to leave 104 Exhibition Street anyway around the time of what Sheezel said was their dismissal for "gross misconduct", Osborn because of his studies and Morgan to pursue opportunities in the private sector.
Further, many Liberals today questioned the propriety of publicly outing and slagging the two in such a brutal manner. Some suggested that it reeked of Sheezel panicking in the way that only those overwhelmed with guilt and fear of apprehension can.
STASI STYLE MONITORING OF STAFF BY SHEEZEL MAKE HIS DENIALS SEEM A LITTLE IMPLAUSIBLE
Well informed Liberal insiders say that it is virtually impossible for the control freak former accountant turned factional warrior Sheezel to deny knowledge of and therefore accountability for the site.
They explain that his best mate is a chap called Dan Feldman. Feldman's brother is an IT guru who runs a company called Visit which operates the Victorian division's email server and IT infrastructure. Through Feldman, Sheezel had all the access that a network administrator would have of the division's IT system.
They insist that Sheezel regularly checks the contents of the email accounts of many staff (as he is entitled to do as their employer) and even goes so far as to check the individual internet traffic logs of individual employees.
This regular checking up on staff would make it impossible for Sheezel not to have known, insiders say, even if he denies his direct involvement.
Sheezel's opportunity to direct his young staff is clear and certainly to stay informed of their activities. His motivation for destabilising Ted boils down to a shared sense of hopelessness about Ted Baillieu's prospects for taking their party to victory. His faction's view of Baillieu is possibly the only them holding them together at the moment as they contemplate an unholy intra-factional war over Higgins, should Peter Costello finally announce his retirement.
THE CASE AGAINST BARRY
There is less circumstantial evidence against Tony Barry because he was working at Crosby Textor, the Liberal Party pollster at the time of the operation of the website.
One source, not known for his favourable disposition towards Barry claimed that telephone recordings involving Barry incontrovertibly proved his knowledge and participation in the site. Those close to Barry scoff at this, saying he is much too careful and wily to be involved in such chicanery.
However, the OC has learned from a number of people in two different cities that Barry had laughingly boasted about the website to them and told several less than discreet friends that "it was just the beginning" of a campaign of destabilisation against Baillieu.
Barry - like Sheezel - was known as a close associate of both of the former party employees involved and is considered to be particularly close with John Osborn.
Big talking Tony Barry's friends and mentors were denying his active involvement saying that he did have his suspicions about who was involved in the site but that he wasn't sure and "didn't want to know." He expressly denies any involvement in the production of the site, as does Sheezel.
Game on.
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