A former Liberal MP spent four years using his electorate allowance to fund trips and entertainment for women he met off a matchmaking website for attractive girls and "wealthy benefactors" who were "generous and successful", the state’s corruption watchdog has found.

Former Liberal MP Phil Edman. Twitter/@bellis16

Phil Edman, who lost his seat in State Parliament's upper house at the last election, was in March caught up in a scandal focusing on a Corruption and Crime Commission report into former WA trade commissioner to Japan Craig Peacock, alleging Mr Peacock used government resources to arrange for Mr Edman and another Liberal MP to visit a Tokyo brothel.

Tuesday’s fresh CCC interim report into misconduct risks for MP electorate allowances detailed Mr Edman’s use of electorate allowances from 2013-2017, as a case study in how $7.5 million a year supposed to help state MPs serve their electorates was unaccountable, unaudited and subject to serious misconduct risk.

The report found Mr Edman met women using paid subscription website Seeking Arrangement. One told the Commission women went on the site seeking someone who could help them out financially.

The report found Mr Edman paid for expensive hotels, business class plane tickets and meals for these women out of his electoral allowance, and told examiners these trips were work related, despite making only token efforts to make the trips seem work-related.

It found while intimate relationships were not misconduct, Mr Edman should not have claimed any expenses incurred on behalf of his companions.

Ms Z

One woman referred to as 'Ms Z' scored a $2500 five-day trip to Melbourne, including business class plane seats, accommodation at the Grand Mercure Docklands, and a $465 meal at Ginza Teppanyaki.

Ms Z told the Commission the only thing they did together that might relate to electorate business was to go on a public tour of the Victorian Parliament.

“Well, I must have been there for a conference or a work – for a meeting. I know there was a cancer ward that I was watching in Melbourne as well at the time, because they wanted – that was the Plenary Group and they wanted to build our stadium in Perth,” Mr Edman told examiners.

Ms Y

In 2014, the report found, Mr Edman visited Darwin for a five-day trip costing more than $8000 inferring this was relevant to a Point Peron rehabilitation project.

When examiners asked why he needed to travel, he initially avoided answering the question and then said 'I can't remember', the report said.

But a European student, 'Ms Y', who met Mr Edman on Seeking Arrangement, told the Commission he was visiting her while she worked as an au pair.

The report found his allowance paid for a week at Sky City Casino costing $4500, an Avis rental car, and a meal at Char costing almost $300.

The woman said he answered a "couple of emails" during this time. The Commission looked at those and found a couple to his business partner in his cabinetry business, one to his electorate officer with a complaint about the Avis rental, and one to his research officer and a local journalist regarding a media story.

While the woman said they had a sexual relationship, when asked if Ms Y had stayed with him in his hotel room Mr Edman told examiners: "I don't think she stayed but she - she - we had some drinks in my room … I can't remember."

Ms X

The report found in April 2015, Mr Edman claimed an extension of a work trip to Canberra for five days past the completion of his work tasks but claimed accommodation for his entire stay, meals and entertainment.

It said Mr Edman had arranged a visit with local woman Ms X via Seeking Arrangement and claimed their $465 meal at Ottoman Cuisine and a $1000 helicopter flight to and from a winery.

Mr Edman vehemently denied Ms X stayed with him in Canberra, the report found, but Crowne Plaza records supported what Ms X told the Commission; she was his guest for two days and nights.

After being shown evidence, Mr Edman amended his evidence to say he could not recall whether anyone stayed with him.

“Records from Crowne Plaza Canberra indicate that on 10 April 2015, during a dispute with the hotel in relation to the temperature of his hotel room, Mr Edman identified himself as being in an 'important Govt. Position in WA govt'," the report said.

“He subsequently received a room upgrade as part of resolving his dispute. At the time of the dispute, hotel staff offered to check his room however Mr Edman refused. The hotel noted Mr Edman saying 'it's too inconvenient as his wife (was) already asleep'.”

During this stay was when Mr Edman organised the trip to Japan with former WA Commissioner in Japan Craig Peacock which was so highly publicised in March 2019.

The wine tour, the Penthouse Club and the Black Hand Gang

The report also covers Mr Edman claiming:

$4000 for wine and almost $1000 for meals during a wine tour in South Australia in August-September 2016 during which he texted Mr Peacock that he 'blew' $1000 at one winery and was also about to visit a “titty bar”.

Almost $18,000 for dinners held between December 2013-June 2016 at Midori Japanese restaurant, Lamonts, Matilda Bay Restaurant and Silks, Burswood, for 'seminars' he organised for a group of MPs calling themselves the “Black Hand Gang”, despite the group members already having reimbursed him for the meals.

Almost $3000 for four 2016 visits to Northbridge strip club the Penthouse Club Perth, entertaining people in its ‘champagne rooms’, then blaming his electorate officer for including these expenses on his allowance spreadsheet.

A berth for his yacht, named “Prime Minister”, at the South of Perth Yacht Club; $10,777 for vehicle registrations and speeding fines for himself, his wife and Ms Z; and expenses for “rewards” for his staff such as Christmas parties and a trip to Rottnest.

The fallout

A statement from Mr Edman's lawyer said Mr Edman's approach to using his allowance "for a mixture of private and public purposes" was an approach "common amongst his parliamentary colleagues and a purpose contemplated by Parliament."

He conceded on occasion private expenditure was "misallocated" due to "insufficient attention and time being spent on financial affairs".

"Mr Edman devoted his full time and attention to discharging the duties and obligations of his office and took great pride in doing so," it said.

It said the investigation had brought to light details causing anxiety and embarrassment to him and his family, and he believed even holders of public office should be entitled to a private life.

He said the liaisons mentioned in the report took place during a temporary separation with his wife and while he declined to discuss the details of the report but this should not be interpreted as a wholesale acceptance of the facts detailed in it or the conclusions drawn.

"He stresses, however, that at no stage did he act dishonestly or with the least intention to corruptly misuse public funds for his own benefit," it said.

The Commission has formed an opinion of serious misconduct. It found there was no auditing of electorate allowances and so it was impossible to say whether or not the case was an isolated one.

The report was interim and 'Operation Betelgeuse' continued.

Premier Mark McGowan said the details were "simply appalling, completely and utterly unacceptable".

He said the government last year referred to the SAT a request to how the allowance may need to be changed to improve transparency and accountability, with a report due early in 2020.

He was also speaking to the head of the salaries and allowances tribunal later on Tuesday to reinforce the need for greater accountability around that allowance and a report on that was also due in early 2020.

Ms Harvey on Tuesday said she was "appalled" and had instructed Liberal Party state director Sam Calabrese to begin the process of expelling Mr Edman.

"I am shocked and angry that a Member of Parliament would behave in such a fashion ... I will assist in any way I can to make the electoral allowance system more transparent," she said.