Member for Hawthorn and former Victorian Liberal leader, John Pesutto, has made a payment of $2.3 million covering legal expenses owed to his colleague, Moira Deeming, successfully averting a potential bankruptcy and subsequent exit from state parliament. This payment came after the Victorian Liberal party extended a $1.5 million loan to Pesutto. The structure of this loan facilitates Pesutto’s financial obligations, thus enabling him to retain his position at Parliament.
In May, the federal court ruled in favor of Deeming, ordering Pesutto to cover her legal costs. The court’s judgment followed its December ruling that found Pesutto guilty of defaming Deeming by suggesting her sympathy with neo-Nazis and white supremacists. This decision added to the $300,000 in damages and $15,000 in interest Pesutto was already ordered to pay.
To meet these substantial costs, Pesutto initiated a fundraising campaign. However, the essential financial support came from the Liberal party’s investment entity, Vapold, which provided a $1.5 million loan. This loan was sanctioned by the party’s administrative committee last Thursday. The financial backing not only covers the legal expenses but also circumvents a potential challenge within the party. This challenge sought to contest Vapold’s decision to provide the loan to Pesutto to cover the costs.
Pesutto’s resolution to clear his legal dues has thus neutralized the threat of bankruptcy that loomed over his political career, allowing him to continue serving his community as the member for Hawthorn.
Source: https://www.theguardian.com/australia-news/2025/jun/26/john-pesutto-pays-defamation-costs-debt-to-moira-deeming-avoiding-bankruptcy-ntwnfb
