John Pesutto pays $2.3m defamation debt to Moira Deeming, avoiding bankruptcy

John Pesutto, the former leader of the Victorian Liberal party, has successfully paid a substantial defamation debt of $2.3 million to his colleague Moira Deeming. This payment was crucial in preventing Pesutto from facing bankruptcy, enabling him to continue serving as the member for Hawthorn in the state parliament. The funds were sourced partly through a significant loan of $1.5 million from the Liberal party's investment vehicle, Vapold, which was sanctioned by the party's administrative committee. The federal court had previously ruled against Pesutto in December, determining that he had defamed Deeming by falsely suggesting her connections to neo-Nazi and white supremacist ideologies. This ruling not only imposed the hefty legal costs but also required Pesutto to pay an additional $300,000 in damages and $15,000 in interest, which he had already settled following the court's judgment.

In light of these developments, Pesutto initially sought to raise funds through a public campaign to cover the legal expenses. However, the necessity of the loan from Vapold highlights the financial strain that the defamation case has placed on him. The recent payment effectively quashes any potential legal challenges that might have arisen from a party member's attempt to contest the loan approval. By settling this debt, Pesutto can now focus on his political responsibilities without the looming threat of bankruptcy, thus stabilizing his position within the party and the parliament. This situation reflects the complexities and challenges faced by political figures in managing personal reputations while navigating the legal ramifications of public discourse.