Legal bill bailout to spare ex-Liberal boss bankruptcy
A state Liberal party has come to the financial rescue of its axed leader to spare him from bankruptcy and avoid a politically dangerous by-election.
The Victorian Liberals' administrative committee met on Thursday night and agreed to lend former leader John Pesutto $1.55 million to settle his debt to first-term MP Moira Deeming.
The party will pay the money directly to Mrs Deeming and Mr Pesutto will be required to repay the loan at market-rate interest.
In a letter to party members, Victorian Liberal president Philip Davis said the outcome would ensure there was no by-election in Mr Pesutto's marginal seat of Hawthorn.
"Settling this matter once and for all is in the interests of the party as it will see an end to the ongoing commentary that is letting Labor get away with their appalling performance," he wrote.
The Hawthorn MP was ordered to pay $2.3 million in legal costs to Mrs Deeming after the Federal Court found he defamed her by implying she was associated with neo-Nazis.
It left him facing bankruptcy, which would trigger his exit from parliament and a subsequent by-election, unless the debt was paid back in a matter of weeks.
Mr Pesutto, who has already coughed up $315,000 in damages, had raised only about $750,000 through wealthy backers and a GoFundMe campaign.
An offer to defer some of the legal bill in exchange for Mrs Deeming's guaranteed preselection and Mr Pesutto swearing off trying to return as leader for three years were rebuffed.
Entering parliament on Thursday morning, Mr Pesutto was upbeat about the committee agreeing to his loan request.
"I certainly hope it gets resolved," he said.
"Tonight's an opportunity to square (the issue) off and put it all behind us."
Mrs Deeming, who was expelled from the party room before being welcomed back in December, was sceptical it would end the infighting that has engulfed the party since March 2023.
"I assume that they will continue with their quest to try to annihilate me," the upper house MP said.
Mrs Deeming said the party can "do what they like" but she would take any support of Mr Pesutto as a "direct rebukement (sic)" of the court judgement.
She said her party room colleagues "don't speak to me" because she "had the audacity to defend myself against false claims".
"Some of them are very nice," Mrs Deeming said.
"But I really do get treated as though it is my fault and that I'm the aggressor, and that's ridiculous."
Opposition Leader Brad Battin has not escaped internal criticism of his handling of the saga despite inheriting it when he replaced Mr Pesutto as leader in December.
He attended the meeting but would not reveal how he intended to vote.
"I'll go through the process with the administrative committee and keep all my conversations with them confidential," Mr Battin said on Thursday afternoon.
Time is running out for Mr Battin to unite the party before the next state election in November 2026.
He had a message for Mr Pesutto or Mrs Deeming if the outcome of the meeting did not go their way.
"Should any person wake up unhappy tomorrow, I would say to them, 'Have a look around and smell the roses and let's see what Victoria really needs'," Mr Battin said.
"They need an opposition whose ready to govern and we'll ensure that is us."
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Mr Battin said he would speak to Mrs Deeming, but refused to comment on the substance of her post. An offer to defer some of Mr Pesutto's legal bill in exchange for Mrs Deeming's guaranteed preselection and him swearing off trying to return as leader for three years was rejected. The proposed deal led to a complaint to the state's corruption watchdog, but Mrs Deeming denied claims of blackmail. Mr Pesutto said he was grateful and humbled by the committee's decision. "I am totally committed to continuing my work as the member for Hawthorn and also serving as a member of Brad's team," he said in a statement. Deputy Premier Ben Carroll was similarly relieved for Mr Pesutto and his family, but argued the "never-ending schoolyard spat" showed the Liberals were unfit to govern. A state Liberal leader is defending a million-dollar bailout to save his predecessor's political career and reunite his fractured party. The Victorian Liberals' administrative committee on Thursday night agreed to lend former leader John Pesutto $1.55 million to settle legal costs owed to first-term MP Moira Deeming. Opposition Leader Brad Battin voted to support the deal, with the money to be paid directly to Mrs Deeming and Mr Pesutto set to repay it at market-rate interest. Mr Battin denied he had effectively chosen to side with Mr Pesutto in his defamation dispute with Mrs Deeming, which has engulfed the party since March 2023. "I would say anyone that states that is factually wrong," he told reporters on Friday. "My side is on the Victorian Liberal Party to ensure we can put a line in the sand and move forward." Mr Pesutto was ordered to pay $2.3 million in legal costs to Mrs Deeming after the Federal Court found he defamed her by implying she was associated with neo-Nazis. It left him facing bankruptcy, which would have triggered his exit from parliament and a subsequent by-election in his marginal seat of Hawthorn, unless the debt was paid by the end of July. Mr Pesutto, who has already coughed up $315,000 in damages, had only raised about $750,000 through wealthy backers and a GoFundMe campaign. The loan for the remainder of the money is not drawn from party campaign or taxpayer funds. Political scientist Zareh Ghazarian said the party had "dodged a bullet" by avoiding a politically dangerous by-election. He said the public episode demonstrated deep divisions within the Liberals' parliamentary ranks and could have consequences at the ballot box. "All political parties have divisions ... but it's really important that the party appears united," the Monash University political lecturer told AAP. "I'm reminded of the line that Bob Hawke used in the lead up to the 1990 election that 'if you can't govern yourselves, you can't govern the country'." Dr Ghazarian said Mr Battin and the party had "plenty of time" to mend fences before the November 2026 election, but could not afford more internal spotfires. The next potential hiccup could come during candidate preselections, expected to start in September. Mr Battin plans to speak with his colleagues to stress the need to present a credible alternative to the Victorian Labor government, in power for all but four years since 1999. "I am confident we'll be going to the next election with a united team," he said. "Victorians are sick of the Liberal Party talking about the Liberal Party." Mrs Deeming, who was expelled from the Liberal party room over the furore before returning in December, did not appear to subscribe to Mr Battin's unity message. She compared her treatment to victims of institutional abuse. "They failed to protect her when she was attacked," Mrs Deeming posted. "They punished her for defending herself ... this is what institutional abuse looks like." Mr Battin said he would speak to Mrs Deeming, but refused to comment on the substance of her post. An offer to defer some of Mr Pesutto's legal bill in exchange for Mrs Deeming's guaranteed preselection and him swearing off trying to return as leader for three years was rejected. The proposed deal led to a complaint to the state's corruption watchdog, but Mrs Deeming denied claims of blackmail. Mr Pesutto said he was grateful and humbled by the committee's decision. "I am totally committed to continuing my work as the member for Hawthorn and also serving as a member of Brad's team," he said in a statement. Deputy Premier Ben Carroll was similarly relieved for Mr Pesutto and his family, but argued the "never-ending schoolyard spat" showed the Liberals were unfit to govern. A state Liberal leader is defending a million-dollar bailout to save his predecessor's political career and reunite his fractured party. The Victorian Liberals' administrative committee on Thursday night agreed to lend former leader John Pesutto $1.55 million to settle legal costs owed to first-term MP Moira Deeming. Opposition Leader Brad Battin voted to support the deal, with the money to be paid directly to Mrs Deeming and Mr Pesutto set to repay it at market-rate interest. Mr Battin denied he had effectively chosen to side with Mr Pesutto in his defamation dispute with Mrs Deeming, which has engulfed the party since March 2023. "I would say anyone that states that is factually wrong," he told reporters on Friday. "My side is on the Victorian Liberal Party to ensure we can put a line in the sand and move forward." Mr Pesutto was ordered to pay $2.3 million in legal costs to Mrs Deeming after the Federal Court found he defamed her by implying she was associated with neo-Nazis. It left him facing bankruptcy, which would have triggered his exit from parliament and a subsequent by-election in his marginal seat of Hawthorn, unless the debt was paid by the end of July. Mr Pesutto, who has already coughed up $315,000 in damages, had only raised about $750,000 through wealthy backers and a GoFundMe campaign. The loan for the remainder of the money is not drawn from party campaign or taxpayer funds. Political scientist Zareh Ghazarian said the party had "dodged a bullet" by avoiding a politically dangerous by-election. He said the public episode demonstrated deep divisions within the Liberals' parliamentary ranks and could have consequences at the ballot box. "All political parties have divisions ... but it's really important that the party appears united," the Monash University political lecturer told AAP. "I'm reminded of the line that Bob Hawke used in the lead up to the 1990 election that 'if you can't govern yourselves, you can't govern the country'." Dr Ghazarian said Mr Battin and the party had "plenty of time" to mend fences before the November 2026 election, but could not afford more internal spotfires. The next potential hiccup could come during candidate preselections, expected to start in September. Mr Battin plans to speak with his colleagues to stress the need to present a credible alternative to the Victorian Labor government, in power for all but four years since 1999. "I am confident we'll be going to the next election with a united team," he said. "Victorians are sick of the Liberal Party talking about the Liberal Party." Mrs Deeming, who was expelled from the Liberal party room over the furore before returning in December, did not appear to subscribe to Mr Battin's unity message. She compared her treatment to victims of institutional abuse. "They failed to protect her when she was attacked," Mrs Deeming posted. "They punished her for defending herself ... this is what institutional abuse looks like." Mr Battin said he would speak to Mrs Deeming, but refused to comment on the substance of her post. An offer to defer some of Mr Pesutto's legal bill in exchange for Mrs Deeming's guaranteed preselection and him swearing off trying to return as leader for three years was rejected. The proposed deal led to a complaint to the state's corruption watchdog, but Mrs Deeming denied claims of blackmail. Mr Pesutto said he was grateful and humbled by the committee's decision. "I am totally committed to continuing my work as the member for Hawthorn and also serving as a member of Brad's team," he said in a statement. Deputy Premier Ben Carroll was similarly relieved for Mr Pesutto and his family, but argued the "never-ending schoolyard spat" showed the Liberals were unfit to govern. A state Liberal leader is defending a million-dollar bailout to save his predecessor's political career and reunite his fractured party. The Victorian Liberals' administrative committee on Thursday night agreed to lend former leader John Pesutto $1.55 million to settle legal costs owed to first-term MP Moira Deeming. Opposition Leader Brad Battin voted to support the deal, with the money to be paid directly to Mrs Deeming and Mr Pesutto set to repay it at market-rate interest. Mr Battin denied he had effectively chosen to side with Mr Pesutto in his defamation dispute with Mrs Deeming, which has engulfed the party since March 2023. "I would say anyone that states that is factually wrong," he told reporters on Friday. "My side is on the Victorian Liberal Party to ensure we can put a line in the sand and move forward." Mr Pesutto was ordered to pay $2.3 million in legal costs to Mrs Deeming after the Federal Court found he defamed her by implying she was associated with neo-Nazis. It left him facing bankruptcy, which would have triggered his exit from parliament and a subsequent by-election in his marginal seat of Hawthorn, unless the debt was paid by the end of July. Mr Pesutto, who has already coughed up $315,000 in damages, had only raised about $750,000 through wealthy backers and a GoFundMe campaign. The loan for the remainder of the money is not drawn from party campaign or taxpayer funds. Political scientist Zareh Ghazarian said the party had "dodged a bullet" by avoiding a politically dangerous by-election. He said the public episode demonstrated deep divisions within the Liberals' parliamentary ranks and could have consequences at the ballot box. "All political parties have divisions ... but it's really important that the party appears united," the Monash University political lecturer told AAP. "I'm reminded of the line that Bob Hawke used in the lead up to the 1990 election that 'if you can't govern yourselves, you can't govern the country'." Dr Ghazarian said Mr Battin and the party had "plenty of time" to mend fences before the November 2026 election, but could not afford more internal spotfires. The next potential hiccup could come during candidate preselections, expected to start in September. Mr Battin plans to speak with his colleagues to stress the need to present a credible alternative to the Victorian Labor government, in power for all but four years since 1999. "I am confident we'll be going to the next election with a united team," he said. "Victorians are sick of the Liberal Party talking about the Liberal Party." Mrs Deeming, who was expelled from the Liberal party room over the furore before returning in December, did not appear to subscribe to Mr Battin's unity message. She compared her treatment to victims of institutional abuse. "They failed to protect her when she was attacked," Mrs Deeming posted. "They punished her for defending herself ... this is what institutional abuse looks like." Mr Battin said he would speak to Mrs Deeming, but refused to comment on the substance of her post. An offer to defer some of Mr Pesutto's legal bill in exchange for Mrs Deeming's guaranteed preselection and him swearing off trying to return as leader for three years was rejected. The proposed deal led to a complaint to the state's corruption watchdog, but Mrs Deeming denied claims of blackmail. Mr Pesutto said he was grateful and humbled by the committee's decision. "I am totally committed to continuing my work as the member for Hawthorn and also serving as a member of Brad's team," he said in a statement. Deputy Premier Ben Carroll was similarly relieved for Mr Pesutto and his family, but argued the "never-ending schoolyard spat" showed the Liberals were unfit to govern.
The Advertiser
17 hours ago
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Guilty: premier's ex-partner misled corruption probe
Ex-Liberal MP Daryl Maguire has been found guilty of misleading a corruption probe about benefits expected from a $48 million property development sale. The former member for Wagga Wagga, whose clandestine relationship with ex-NSW premier Gladys Berejiklian led to her political downfall, appeared at Sydney's Downing Centre Courthouse for the verdict on Friday. Magistrate Clare Farnan found he misled the NSW Independent Commission Against Corruption while giving evidence during a hearing in July 2018. Ms Farnan rejected a bid by Maguire's legal team to suppress the publication of the guilty verdict. "The interests of the community in open justice is in my view not outweighed by Mr Maguire's interests," she said. At ICAC, Maguire was asked about what he expected to get out of the sale of an estimated $48 million property development in Campsie in Sydney's southwest. During the criminal hearing earlier in 2025, prosecutors claimed Maguire flipped during questioning over claims he was not expected to be reimbursed. ICAC grilled Maguire and others in 2018 under Operation Dasha, which probed allegations of corruption at the local council. The Wagga Wagga MP resigned from the Berejiklian government after giving evidence, before succumbing to pressure and quitting parliament altogether. ICAC opened a further probe into Maguire, exposing his secret romantic relationship with Ms Berejiklian in 2020. She also stood down from her role and was later found by ICAC to have breached public trust in failing to disclose the relationship, spanning at least five years while she was transport minister, treasurer and then premier. Ex-Liberal MP Daryl Maguire has been found guilty of misleading a corruption probe about benefits expected from a $48 million property development sale. The former member for Wagga Wagga, whose clandestine relationship with ex-NSW premier Gladys Berejiklian led to her political downfall, appeared at Sydney's Downing Centre Courthouse for the verdict on Friday. Magistrate Clare Farnan found he misled the NSW Independent Commission Against Corruption while giving evidence during a hearing in July 2018. Ms Farnan rejected a bid by Maguire's legal team to suppress the publication of the guilty verdict. "The interests of the community in open justice is in my view not outweighed by Mr Maguire's interests," she said. At ICAC, Maguire was asked about what he expected to get out of the sale of an estimated $48 million property development in Campsie in Sydney's southwest. During the criminal hearing earlier in 2025, prosecutors claimed Maguire flipped during questioning over claims he was not expected to be reimbursed. ICAC grilled Maguire and others in 2018 under Operation Dasha, which probed allegations of corruption at the local council. The Wagga Wagga MP resigned from the Berejiklian government after giving evidence, before succumbing to pressure and quitting parliament altogether. ICAC opened a further probe into Maguire, exposing his secret romantic relationship with Ms Berejiklian in 2020. She also stood down from her role and was later found by ICAC to have breached public trust in failing to disclose the relationship, spanning at least five years while she was transport minister, treasurer and then premier. Ex-Liberal MP Daryl Maguire has been found guilty of misleading a corruption probe about benefits expected from a $48 million property development sale. The former member for Wagga Wagga, whose clandestine relationship with ex-NSW premier Gladys Berejiklian led to her political downfall, appeared at Sydney's Downing Centre Courthouse for the verdict on Friday. Magistrate Clare Farnan found he misled the NSW Independent Commission Against Corruption while giving evidence during a hearing in July 2018. Ms Farnan rejected a bid by Maguire's legal team to suppress the publication of the guilty verdict. "The interests of the community in open justice is in my view not outweighed by Mr Maguire's interests," she said. At ICAC, Maguire was asked about what he expected to get out of the sale of an estimated $48 million property development in Campsie in Sydney's southwest. During the criminal hearing earlier in 2025, prosecutors claimed Maguire flipped during questioning over claims he was not expected to be reimbursed. ICAC grilled Maguire and others in 2018 under Operation Dasha, which probed allegations of corruption at the local council. The Wagga Wagga MP resigned from the Berejiklian government after giving evidence, before succumbing to pressure and quitting parliament altogether. ICAC opened a further probe into Maguire, exposing his secret romantic relationship with Ms Berejiklian in 2020. She also stood down from her role and was later found by ICAC to have breached public trust in failing to disclose the relationship, spanning at least five years while she was transport minister, treasurer and then premier. Ex-Liberal MP Daryl Maguire has been found guilty of misleading a corruption probe about benefits expected from a $48 million property development sale. The former member for Wagga Wagga, whose clandestine relationship with ex-NSW premier Gladys Berejiklian led to her political downfall, appeared at Sydney's Downing Centre Courthouse for the verdict on Friday. Magistrate Clare Farnan found he misled the NSW Independent Commission Against Corruption while giving evidence during a hearing in July 2018. Ms Farnan rejected a bid by Maguire's legal team to suppress the publication of the guilty verdict. "The interests of the community in open justice is in my view not outweighed by Mr Maguire's interests," she said. At ICAC, Maguire was asked about what he expected to get out of the sale of an estimated $48 million property development in Campsie in Sydney's southwest. During the criminal hearing earlier in 2025, prosecutors claimed Maguire flipped during questioning over claims he was not expected to be reimbursed. ICAC grilled Maguire and others in 2018 under Operation Dasha, which probed allegations of corruption at the local council. The Wagga Wagga MP resigned from the Berejiklian government after giving evidence, before succumbing to pressure and quitting parliament altogether. ICAC opened a further probe into Maguire, exposing his secret romantic relationship with Ms Berejiklian in 2020. She also stood down from her role and was later found by ICAC to have breached public trust in failing to disclose the relationship, spanning at least five years while she was transport minister, treasurer and then premier.
