3 days ago
Jeff Kennett warns ‘dysfunctional' Victorian Liberals face ‘extroadinary implosion' as fallout from Deeming-Pesutto case continues
Jeff Kennett has lamented the state of the Victorian Liberal Party, warning it is on the cusp of an 'extraordinary implosion' as the fallout from Moira Deeming's successful defamation battle against John Pesutto continues.
Mr Pesutto is in a race against time to raise the $2.3 million needed to cover Ms Deeming's legal costs after a federal court found he had defamed his own MP as someone who 'associates with Nazis'.
Liberals are divided on whether the party or its fundraising body, the Cormack Foundation, should cover the costs of the debt in order to prevent a by-election in Mr Pesutto's seat of Hawthorn – which could result in a Teal victory.
Speaking to the Herald Sun on Wednesday, Mr Kennett said there was a complete absence of leadership in the party, labelling it 'dysfunctional'.
'Leadership is absent (and) they are prepared to bankrupt one of their own. What values does the party have when it won't embrace one of its own?' Mr Kennett said.
'Our members and volunteers deserve so much better.'
Mr Pesutto has until Friday before bankruptcy proceedings begin. He will then have 21 days to either pay the amount owed, agree on a payment plan, or be declared bankrupt – an outcome that will result in his expulsion from parliament.
Lawyers for Ms Deeming have also begun preparing to go after key Liberal figures who helped fund Mr Pesutto's legal case, taking advantage of a precedent that allows the successful party in a defamation case to recoup costs from the financial backers of the unsuccessful party.
The Australian revealed earlier this week that Ms Deeming's lawyers had written a legal letter naming nine Liberal figures – including Mr Kennett and two other former premiers – as potential targets, if Mr Pesutto is unable to pay the $2.3 million owed.
The letter sought further information about the contributions of Mr Kennett, former premiers Ted Baillieu and Dennis Napthine, and six other Liberal figures had made to Mr Pesutto's legal case.
Mr Kennett is on the public record as having supported the Hawthorn MP, but the former premier has told The Australian he only made a 'token' contribution.
'My army training taught me you salute the uniform and support the leader, so when John (Pesutto) was under pressure, very early I made a token donation as a public gesture of supporting the leader,' the former Premier said.
'After that I had no idea or involvement in the conduct of the court case. It was a token donation.'
Speaking to reporters on Wednesday, Ms Deeming said there was 'no case except the one against John'.
The Western Metropolitan MP took out a loan to fund her successful defamation battle, which the $2.3 million in costs and the $315,000 in damages Mr Pesutto has already paid are being used to cover.
'My lawyers ensured that when Mr Grugeon (NSW businessman Hilton Grugeon) generously agreed to loan me millions of dollars to defend myself against the campaign to destroy my life, he was fully aware of the fact that he could be held liable to pay for mine and Pesutto's costs if I lost and went bankrupt,' Ms Deeming said in a statement earlier this week.
'So I have no doubt that Mr Pesutto, being a lawyer himself, ensured that his financiers were aware of that same risk prior to accepting their support.'
Mr Pesutto has embarked on a publicity tour since the costs order was issued, and on Monday he told Sky News Australia he was 'hopeful' of raising the money.
'I'm working with a number of potential supporters to try and raise that money,' he said.
'There are some hopeful signs that I can get there.
'I do want to meet that debt that I owe Ms Deeming, and I want to discharge the court's order, so I'm working very carefully to try and do that by the due date.'
A GoFundMe page set up on his behalf has now raised more than $187,000, and reports late last week indicated he had also managed to raise an additional $500,000 from donors and supporters.
