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Liberal Party bails out John Pesutto, agreeing to $1.5m loan

  • On Thursday evening, the Victorian Liberal Party's administrative committee decided to provide John Pesutto, their former leader, with a $1.55 million loan to clear the debt he owes to MP Moira Deeming.
  • Following a Federal Court ruling that found Pesutto defamed Deeming by suggesting links to neo-Nazis, he was ordered to cover $2.3 million in legal expenses owed to her.
  • Pesutto faced bankruptcy which could force him out of parliament and trigger a by-election unless the debt was settled by June 27, prompting fundraising and negotiations for party loan support.
  • The loan will be repaid by Pesutto with market-rate interest, allowing the party to avoid a by-election in the marginal seat of Hawthorn, as stated by Liberal president Philip Davis.
  • The party hopes to end infighting ahead of the November 2026 state election, but internal tensions remain high, with Deeming expressing frustration and Battin urging unity to focus on defeating Labor.
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ABC Australia broke the news in Australia on Thursday, June 19, 2025.
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