Moira Deeming moves to bankrupt John Pesutto over unpaid bill

Herald Sun

2 days ago

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Lawyers for Moira Deeming have applied to the Federal Court to have John Pesutto made bankrupt over his unpaid $2.3m legal bill.
The Herald Sun has confirmed a creditor's petition was lodged on Monday morning over Mr Pesutto's failure to pay court-awarded legal costs to Mrs Deeming after losing a defamation case brought against him.
Mr Pesutto now has 21 days to pay the multimillion-dollar debt, enter into a payment arrangement or face bankruptcy and an abrupt end to his political career.
If bankrupt he would be ineligible to sit in parliament and his exit would trigger a costly by-election in his marginal seat of Hawthorn which the party fears losing.
Senior Liberal Party figures are working to secure the support of the administrative committee to loan Mr Pesutto an estimated $1.5m he needs to clear the debt.
There were hopes the committee would meet over the weekend.
'They don't want to meet until they have a solution on the table,' one senior Liberal said.
'This issue is killing them.'
In a brief statement Mr Pesutto said he would 'be doing everything possible over the next 21 days to pay the amount ordered by the Federal Court.'
'I will continue performing my work as the Member for Hawthorn, and I reiterate my wish to do so for as long as the people of my electorate will have me,' he said.
Mrs Deeming told the Herald Sun last week the decision to initiate bankruptcy proceedings was not one she took lightly.
But she said she was committed to repaying wealthy NSW businessman Hilton Grugeon who bankrolled her successful defamation case against Mr Pesutto.
'My goal is simple, to ensure that I am reimbursed so that I can repay that loan as I promised I would,' she said.
'The past two years have been a harrowing journey for me, my husband and our four children.
'After being falsely accused of bigotry, of knowingly associating with Nazis — claims the court found to be defamatory, I faced a torrent of public and private abuse, including rape threats, stalking and personal and professional humiliation and isolation. Sadly, I was not the only innocent woman who suffered as a result of the campaign to expel me.
'This moment should never have come to pass. But since it has, let it stand as a reckoning — not just for one individual, but for a culture of political brutality that must end.
'No man is above the law.'
The ongoing public battle between Mr Pesutto and Mrs Deeming has plagued the party for more than two years since it began in March 2023.