Liberal MP Referred to Anti-Corruption Watchdog Over Alleged Preselection Bargain

Moira Deeming offered a deal seeking her preselection in exchange for easing former Liberal leader John Pesutto’s legal debt of $2.3 million.

Independent MP Moira Deeming (centre) speaks to media outside the Federal Court of Australia in Melbourne, Australia on Dec. 12, 2024. AAP Image/Joel Carrett

Victorian Liberal MP Moira Deeming has been referred to the state’s anti-corruption watchdog after a proposed arrangement surfaced that would have seen her secure preselection in return for easing a legal debt owed by former Opposition Leader John Pesutto.

A member of the public submitted a formal complaint to the Independent Broad-based Anti-corruption Commission (IBAC) following media reports about the offer, which did not come to fruition.

While anyone is entitled to lodge a complaint with IBAC, the body determines independently whether to investigate, with a goal of assessing all referrals within 45 days.

The development stems from a Federal Court ruling last year in which Pesutto was found to have defamed Deeming by implying she was aligned with neo-Nazis who disrupted a “Let Women Speak” rally in Melbourne in 2023.

As a result, Pesutto was ordered to pay $2.3 million in damages to Deeming. Unless he arranges a payment plan or pays the amount in full soon, he could face bankruptcy and be forced to leave parliament.

Outrage Fuels Referral

The individual behind the complaint informed Liberal MPs in an email on June 11, expressing disappointment at the reports surrounding the alleged preselection offer.

“If it takes people like me—outsiders—to initiate this kind of action and help uphold the standards of integrity that all political parties should meet, then I will continue to do so without hesitation,” he wrote in the message, obtained by AAP.

The man confirmed he is not affiliated with the Liberal Party but has previously been a member of three other political parties.

Deeming’s Conditions for Deferring Debt

In a letter dated June 8 and addressed to Pesutto, current Opposition Leader Brad Battin, and Victorian Liberal President Philip Davis, Deeming outlined terms she said would avert further damage to the party and allow Pesutto a dignified way out of his financial predicament.

“It is because of the extraordinary support that I have received from rank-and-file members that I make this offer with the intention that the funds they have raised to fight the Labor Party remain solely directed to that important objective,” she wrote.

She proposed that Pesutto use the $760,000 raised so far through crowdfunding to pay part of the damages and allow the remaining debt to be deferred until 2027.

Deeming also demanded a formal apology from the party and confirmation of her preselection for the 2026 state election. That endorsement would require a special resolution, bypassing the usual member vote.

“I have suffered through a gruelling two and a half years where almost every offer I made to negotiate a settlement was rejected,” she wrote.

“This is my final attempt to spare the Liberal Party further harm and to afford Mr. Pesutto, and his family, the dignity that was denied to me, my husband, and my children.”

Deeming Defends Action

Taking to social media, Deeming defended her legal actions.

“For the ‘commentators’ indulging in public victim-blaming... If you interpret a politician being held to account as some kind of political or democratic disaster, maybe you are the problem—not me,” she posted on X.

She praised Battin for standing firm.

“@BradBattinMP deserves praise for refusing to participate in, or succumb to, the retaliatory threats, leaks and public campaigns against me,” she said.

Deeming also rejected claims she targeted the Liberal Party in her legal action, clarifying that the lawsuit was directed solely at Pesutto.

“Legally, neither the Liberal Party nor any of its bodies has ever had an interest in Pesutto’s defence, the outcome of the case or payment of his costs.”

AAP contributed to this article.