The article centers on the financial predicament of Victorian Liberal MP John Pesutto, who faces potential bankruptcy due to legal costs associated with a case involving Moira Deeming. Deeming's legal bill, partially covered by Pesutto, could reach almost $2.4 million, potentially forcing Pesutto's removal from parliament if he is declared bankrupt. The deadline for final submissions is April 28th, coinciding with the federal election campaign.
Despite the ongoing legal issues, Moira Deeming has received a promotion within Brad Battin's team, a move met with outrage by Pesutto's supporters. This promotion is speculated to be an attempt by Battin to manage Deeming's strained relationship with the party while minimizing negative publicity. Deeming herself expresses pride in serving under Battin, emphasizing his focus beyond election cycles.
Several options are being explored to prevent Pesutto's bankruptcy, including a potential loan from the Victorian Liberal Party or crowdfunding. However, the Cormack Foundation, a Liberal Party funding entity, has informally rejected previous requests for aid. Hilton Grugeon, who provided a personal loan to cover Deeming's legal costs, has indicated his unwillingness to bail out Pesutto or the party. The article notes that Deeming would not have refunded Grugeon if she had lost the case.
The article concludes by mentioning that Deeming is expected to face a preselection challenge later in the year. The various financial and political maneuvers surrounding Pesutto's situation and Deeming's promotion highlight internal tensions and challenges within the Victorian Liberal Party.
The portion of Deeming’s legal bill that will be paid by Pesutto is still being thrashed out in court, with Deeming’s team seeking almost $2.4 million in fees. That amount, on top of his own costs in defending the case and the damages bill, is expected to push Pesutto to the brink of bankruptcy.
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Pesutto’s team has until April 28 to make final submissions before the court rules how much he owes, which could be determined in the dying days of the federal election campaign.
Bankruptcy disqualifies anybody from being a member of parliament. Under this scenario, Pesutto would be forced out and a byelection called for his marginal state seat of Hawthorn.
Pesutto’s supporters, speaking on condition of anonymity, were already outraged before Thursday’s announcement on Deeming.
One speculated Battin was attempting to manage Deeming, whose relationship with the party room remains strained since her return in December, but bury the news on the night before the Easter long weekend.
She was the only Liberal MP to miss a conference for the parliamentary party last month.
A Liberal Party supporter of Deeming, who spoke on the condition of anonymity, described her expected promotion as a commonsense political move to sharpen focus on the west.
Deeming late on Thursday said the west had been taken for granted.
“That’s why I’m so proud to serve under Brad because he’s not focused on election cycles.”
The Age last month revealed that Liberal elders had intervened to try to spare Pesutto from possible bankruptcy and the party further embarrassment.
Those backroom discussions have continued, and a question being considered is whether the Victorian Liberal Party could lend Pesutto the money, or part of the money, to avoid a costly byelection. Another option being considered was crowdfunding support for Pesutto.
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NSW property developer Hilton Grugeon helped bankroll Deeming’s legal costs through a personal loan she declared on her register of interests in the Victorian parliament.
One scenario previously pursued was whether Grugeon, a long-time Liberal donor, could forgive Deeming’s debt for the good of the party so that Pesutto could, theoretically, wear less of her costs.
But Grugeon last month revealed to The Age he was not interested in bailing out Pesutto or the party, which he now viewed as a disgrace.
He claimed Deeming was being unfairly pressured to cave after winning the case.
Deeming would not have refunded Grugeon had she lost the case, according to their verbal agreement.
The Cormack Foundation, the Liberal Party’s nominated entity that helps fund its campaigns, had informally knocked back approaches to support Pesutto. Liberal operatives have recently raised that possibility again.
Deeming is expected to face a preselection challenge later this year.
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