Liberal Party bails out John Pesutto, agreeing to $1.5m loan

The Age

5 hours ago

The Victorian Liberal Party has agreed to loan former leader John Pesutto the money he needs to pay the legal bill of his colleague Moira Deeming, stave off bankruptcy and avoid a byelection in his marginal seat.
The party's administrative committee on Thursday night voted to loan Pesutto $1.55 million after a lengthy debate over whether to use party funds to resolve his protracted dispute with Deeming, who had threatened to pursue other Liberal figures for the costs owed to her.
In an email to party members, state president Phil Davis declared the decision would enable Pesutto to pay Deeming and for the party to do its job of holding the government to account.
He noted that Pesutto would repay the money at a market-based interest rate, providing the party with a return on its intervention.
'Settling this matter once and for all is in the interests of the Party, as it will see an end to the ongoing commentary that is letting Labor get away with their appalling performance,' Davis said.
'By ensuring that Mrs Deeming has been paid, there will be no Hawthorn by-election, and the State Parliamentary team can focus on the urgent needs of the Victorian community, particularly campaigning to change the government at the 2026 election.″⁣
The decision defuses a crisis that had already cost Pesutto his job and was threatening the leadership of Brad Battin, who earlier in the day refused to say whether he would support the proposed, party-funded rescue package.
The party's 19-member administrative committee began meeting shortly after 6pm to decide the proposal to help Pesutto cover the balance of court-ordered costs he owes colleague Deeming following her successful defamation case against him.
When asked on Thursday how he would vote at the meeting, Battin declined to answer but expressed confidence the meeting would resolve the crisis. 'After tonight, we will hopefully have a clear path,' Battin said.