Victorian liberals vote to save John Pesutto from bankruptcy

Former Victorian liberal leader John Pesutto will avoid bankruptcy after the party agreed to provide him with a loan of $ 1.55 million.

Mr Pesutto was commissioned to pay fellow liberal MP Moira that considered $ 2.3 million in legal costs after she successfully sued him for defamation.

He was unable to pay the debt, but asked donations to prevent bankruptcy and to be kicked out of parliament.

On Thursday evening, the party agreed to pay $ 1.55 million to MS that is directly considered, where Mr Pesutto reimbursed the party under a commercial regulation.

The decision, made by the party’s administrative committee, means that Mr Pesutto is no longer confronted with deportation from the state parliament for bankruptcy and therefore avoids the need for an interim election in his seat of hawthorn.

Mr. Pesutto had been under a three -week deadline to come up with the money since Mrs. Deeming submitted bankruptcy proceedings against him on 2 June.

In a letter to party members on Thursday evening, the Liberal Party Chairman Philip Davis said that the party had decided that “Moira is considered, which is owed to her, and therefore the party will contribute $ 1.55 million directly to the lady who is considered”.

“Mr. Pesutto will have to repay this amount to the party on the basis of commercial loans, with a market -based interest rate, so that the party earns extra income from this investment,” Davis wrote.

“Arranging this issue once and for all is in the interest of the party, because it will put an end to the current commentary that Labor will get away with their terrible performance.

“By ensuring that Mrs. Deeming has been paid, there will be no accompanying election and the state parliamentary team can concentrate on the urgent needs of the Victorian community, in particular campaign to change the government in the 2026 elections.”

The legal dispute started more than two years ago

The legal dispute between the two, resulting in MS, who would successfully sue Mr Pesutto through the federal court, started in March 2023 after she attended an anti-transthrecht rally in Melbourne.

The event, entitled Let Women speak and described by supporters as an event for women’s rights, was arranged by Neo-Nazis.

Mr. Pesutto, who was then Victorian liberal party leader, tried to expel MS who considered himself from the liberal party because of her presence during the rally; However, this ultimately fell ascoughly when she successfully sued him for defamation in the federal court.

The federal court ruled that Mr. Pesutto MS had damaged, had several times the mingle, including in media interviews, by implying that she is associated with neo-Nazis.

Last month the court ordered Mr Pesutto to pay the legal costs of MS Deeming, a total of $ 2.3 million.

After Mr Pesutto had not paid, her lawyers launched bankruptcy procedures against the Hawthorn MP earlier this month, giving him three weeks to pay or be removed from the State Parliament.

Mr. Pesutto has raised money in other ways, including a public fundraising that has collected around $ 213,000.

As part of his efforts to prevent bankruptcy, Mr Pesutto and his supporters approached the Liberal Party to provide a loan.

Last week, MS Deeming offered to postpone the bankruptcy procedure against Mr Pesutto in exchange for a party from the party that it would be selected for next year’s state elections.

Mr. Pesutto rejected the offer.

On the way to parliament on Thursday morning, Mrs. Deeming expressed frustration about how the test between her and Mr. Pesutto was observed in the party.

“Some of them are very nice, but I am really treated as if it were my fault and that I am the aggressor, and that is ridiculous,” she said.

When asked about her future in the Victorian liberal party, she said, “I assume they will continue their search to destroy me.”