Former Victorian opposition leader John Pesutto has settled a substantial $2.3 million debt he owed to colleague Moira Deeming as a consequence of her successful defamation suit against him. The Liberal Party entity, Vapold, facilitated a significant loan of $1.55 million to Deeming, adhering to a decision made by the party’s administrative committee. To meet the remaining balance, Pesutto relied on his own fundraising efforts. This financial maneuvering underscores the magnitude of the situation, casting a long shadow over the party’s internal dynamics and financial practices.
Pesutto arrived at a crucial meeting of the party’s administrative committee to make his case for support in resolving the debt. Despite the injection of funds, dissent remains among party members, particularly those opposed to Vapold’s loan. These factions are mobilizing to challenge the loan’s legitimacy in court, indicating deep divisions within the party. The Victorian Supreme Court has already scheduled a hearing to assess an application for an interim injunction against this financial backing, highlighting the ongoing tensions.
The stakes are particularly high for Pesutto. Without resolution to the legal costs owed to Deeming, he faced the risk of bankruptcy and immediate removal from his parliamentary position. The administrative committee’s decision to support Pesutto was made under circumstances that required discretion; the vote was conducted via secret ballot, aimed at shielding members from potential backlash. Sources suggest the outcome was narrowly decided, raising concerns about party unity and governance moving forward.
Deeming’s successful defamation case revolved around Pesutto’s alleged false implications of her connections to neo-Nazi groups, a serious accusation that underscores the significant reputational damage to all parties involved. Notably, funding for Deeming’s legal battle came from NSW property developer Grugeon Hilton, indicating external financial influences within intra-party conflicts. This scenario raises questions about the nature of financial support and loyalty within the party ranks.
Last week, revelations surfaced about the precarious nature of the bailout proposal. A coalition of a dozen unnamed party members stepped forward, agreeing to personally guarantee a substantial portion of the loan—$900,000—as a show of solidarity for Pesutto. Had these individuals not intervened, the rescue effort would likely have faltered, emphasizing the fragility of internal party alliances and the extent of financial desperation.
Overall, the unfolding events reflect not only a severe financial crisis for Pesutto but also broader implications for the Liberal Party of Victoria. As court decisions and factional disputes loom, the situation presents a significant test of leadership and stability within the party. With ongoing legal challenges and internal dissent, the ramifications of this episode will likely resonate for some time, shaping the future dynamics of the Victorian political landscape.
