Victorian Labor MP Cesar Melhem faces an uncertain political future with Labor leader Daniel Andrews refusing to fully back the embattled MP over his handling of a controversial union slush fund.
On Tuesday Mr Andrews said Mr Melhem's fate was in the hands of the Heydon royal commission into trade union governance and corruption.
He said Mr Melhem had made a "mistake" in his cavalier use of the slush fund Industry2020 to dole out cash cheques to sub-factional Labor mates.
On Monday in Melbourne the royal commission grilled Mr Melhem over Industry2020, which he founded as leader of the Australian Workers Union in 2008, and which was revealed by Fairfax Media in December 2012.
The commission heard how Mr Melhem used money from the employer-bankrolled fund to finance elections in other unions, and for factional moves including, it seems, thousands of dollars to a western suburban soccer club linked to Labor branch-stacking.
Mr Melhem acknowledged tipping up to $100,000 into elections for the disgraced Health Services Union in 2009 and 2012.
He conceded to the royal commission that the fund was poorly administered, and stressed he would handle it differently if he had his time again.
Mr Andrews told media on Tuesday: "He [Mr Melhem] made a mistake and he was very clear about that [in evidence to the commission].
"If he had his time again he would do things differently."
Mr Andrews would not give Mr Melhem his full backing. "The royal commission has a job to do. It is ongoing. I don't won't pre-empt that."
It is not yet clear when the royal commission will deliver its first report to the Abbott government, and whether it will be delivered ahead of the Victorian election in November.
