Victorian Liberals Loan $1.5 Million to Pesutto After Defamation Loss

A Liberal MP who defamed fellow party member Moira Deeming will avoid bankruptcy after receiving a party loan to cover court costs.

Former Victorian Opposition Leader John Pesutto speaks at Victorian Parliament House in Melbourne, Australia, on Sept. 27, 2023. Asanka Ratnayake/Getty Images

Former Victorian Liberal leader John Pesutto has been granted a $1.55 million (US$970,000) loan from the Victorian Liberals, following a committee decision on June 19.

The funds will be paid to Liberal MP Moira Deeming, following her successful defamation case against Pesutto late last year.

The Federal Court of Australia ruled on Dec. 12 that Deeming be awarded $315,000 in damages, after she successfully argued that Pesutto had defamed her by repeatedly alleging that she was a “Nazi” or “Nazi associate” after she spoke at a women’s rights event in Melbourne.

The “Let Women Speak” rally Deeming spoke at had been gatecrashed by men dressed in black performing Nazi salutes, but Deeming has consistently maintained she had no association with the men and did not know they would be in attendance.

The allegations against Deeming were criticised by the Australian Jewish Association, which called the MP “a friend of the Jewish people” and labelled the claims against her as “ugly.”

Liberal MP Moira Deeming speaks to media following a Victorian Liberals Party Meeting at Parliament House in Melbourne, Australia on Dec. 27, 2024. AAP Image/Joel Carrett

Pesutto was also ordered to foot the bill for legal costs surrounding the defamation case, which came to $2.3 million.

Pesutto risked bankruptcy if unable to pay the full amount, which would have resulted in his expulsion from parliament.

If that happened, the party would have faced a by-election in his electorate of Hawthorn.

Pesutto had raised $750,000 through supporters and a GoFundMe campaign, but it was insufficient for the costs accrued in the aftermath of the court battle.

Pesutto will have to repay the Liberal Party loan at market-rate interest, which will earn income for the party.

“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,” Victorian Liberal president Philip Davis said in a letter penned to Deeming.

“Victorians need a change of government.”

There were additional reports that Pesutto had offered Deeming a deal—that she would be guaranteed preselection in exchange for a $1 million discount—an offer she rejected.

The decision to help Pesutto out financially has come with condemnation from conservative figures in Australia.

Family First National Director Lyle Shelton criticised the move on the social media platform X.

“The Liberals don’t care about his victims and will continue to drive Moira from parliament,” he said.

“In the modern Liberals, the bully wins.”

Women’s Rights campaigner Angie Jones referred to the financial aid as a “disgusting endorsement.”

“Women are second-class citizens to Liberal Victoria,” she wrote on X.