Santoro

Disgraced former minister Santo Santoro last night announced his resignation from Parliament — just hours after Prime Minister John Howard became ensnared in the scandal over his share dealings.

Senator Santoro made his shock announcement in an emotional speech to the Senate at 10pm after speaking with Mr Howard earlier in the evening.

"I've advised the Prime Minister tonight, and I wish to advise the Senate, that I will shortly resign from this august institution," Senator Santoro said.

He will resign at the end of this two-week sitting, with the Liberal Party to choose a replacement from Queensland.

Former Federal Ageing minister, Santo Santoro, gave financial backing to a $41 million capital-raising by a Brisbane property developer two weeks after the group announced the roll-out of 10 retirement villages.

Senator Santoro admitted last week to acting as a sub-underwriter for capital raisings associated with 14 companies including Watpac, which in May last year announced it would develop 10 retirement villages "from North Queensland to Ballina" in NSW with investment bank Babcock & Brown.

The capital-raising, just four months after Senator Santoro's appointment to the ministry, was announced two weeks later. Watpac sought $41.2 million to fund its push into NSW and diversification into retirement villages.

Federal Minister for Ageing Santo Santoro has resigned from the Howard ministry after admitting he had not revealed all his share trading activity.

The Prime Minister, Mr Howard said in a statement the Senators actions were unacceptable.

"After a detailed review of his financial records, required by me, he provided advice indicating a number of investments not hitherto disclosed to the Senate or to me.

"He has written to the Registrar of Senators' Interests today providing the relevant information.