Victorian government MPs will be hauled before the state's closed-door privileges committee for further scrutiny over Labor's $388,000 rorts-for-votes scandal.
The government sided with the Greens in the upper house on Wednesday, out-voting a Liberal-Nationals opposition plan for a publicly-held select committee.
"The privileges committee is specifically designed to hold MPs accountable to the parliamentary code of conduct and has the power to recommend sanctions," Greens MP Sam Hibbins said, adding it is the most appropriate body to handle the matter
Last week Ombudsman Deborah Glass reported on the systematic misuse of public money by 21 past and present Labor MPs to partially fund the party's winning 2014 campaign.
Eleven MPs still remain in parliament and those sitting in the upper house can be compelled to give evidence to the privileges committee.
The committee can ask people outside of parliament and lower house MPs to give evidence, but it cannot compel Legislative Assembly members to appear.
Government representative in the upper house Jalla Pulford told parliament Labor believed the privileges committee was more appropriate because the issue had already been examined and a select committee would just be a "costly witch hunt".
Leader of the opposition in the chamber, Mary Woodridge, said lower house MPs will again dodge scrutiny, having already avoided providing evidence to Ms Glass' investigators.
"Liberal-Nationals members of the privileges committee will be seeking public hearings and publication of evidence," she said.
"If the Greens are genuine about transparency, they will support this approach which will allow the media and public to attend all hearings."
The Greens' motion also calls on Premier Daniel Andrews to apologise to parliament as well as the establishment of an independent commissioner for standards - but the government is not forced to comply.
Ms Glass found the MPs breached parliamentary guidelines by authorising electoral officer time sheets when the staff were instead working on campaigns in other seats.
However, she also found that MPs who participated believed it was within the rules and Labor has repaid the money.
The debacle has seen former Liberal premier Jeff Kennett walk away from overseeing Melbourne's safe injecting room trial.
Mr Kennett said while he supports the North Richmond trial, he could not stay on helping a government that failed to accept responsibility for its rorts.
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