John Pesutto pays $2.3m defamation debt to Moira Deeming, avoiding bankruptcy
Former Victorian Liberal leader John Pesutto has paid $2.3m in legal costs owed to his colleague Moira Deeming, stifling a last-ditch effort by a fellow party member to block the payment.
The payment, which made with the assistance of a $1.5m loan from the Victorian Liberal party, means Pesutto will avoid bankruptcy and be able to remain in state parliament as the member for Hawthorn.
Last month, the federal court ordered Pesutto to $2,308,873 of Deeming's legal costs after it found in December that he repeatedly defamed the upper house MP by falsely implying she sympathised with neo-Nazis and white supremacists.
The costs were in addition to the $300,000 in damages and $15,000 in interest Pesutto paid after the federal court judgment.
Pesutto launched a fundraising campaign to help pay the bill but had to rely on a $1.5m loan from the Liberal party's investment vehicle, Vapold, which was approved by the administrative committee last Thursday.
The payment of the costs removes the prospect of a court challenge, which was to be initiated by a member of the administrative committee, against Vapold providing the loan.
More details soon …
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