Pesutto REJECTS Deeming’s offer that could have saved seat
Moira Deeming's proposal to avert John Pesutto’s bankruptcy has been turned down, setting the stage for potential political and financial fallout.
John Pesutto has rejected a proposal from Moira Deeming that could have spared him bankruptcy and the Victorian Liberal Party a costly by-election in the seat of Hawthorn.
The former opposition leader faces a looming deadline to settle $2.3 million in court-ordered legal costs owed to Deeming, after he was found to have defamed her by suggesting she “associates with Nazis.” Pesutto has raised about $750,000 but still needs $1.5 million, with discussions ongoing about whether the Liberal Party or a party-linked fund will step in with a loan.
Deeming had offered not to enforce the bankruptcy if Pesutto met several conditions, including paying the $750,000 immediately, deferring the rest of the debt until March 2027, and receiving party endorsement for preselection in the Western Metropolitan Region. She also demanded a written and public apology, a review into internal party dispute processes, and a commitment to move forward.
🚨 Moira Deeming did NOTHING wrong
— Avi Yemini (@OzraeliAvi) May 22, 2025
Watching John Pesutto squirm on national TV after losing a $2.3 million defamation case to Moira Deeming was a satisfying moment of justice served
Full story: https://t.co/zvC35TpIit pic.twitter.com/L4DnKWhaip
“I write to you as a Liberal and I make this offer as someone who deeply respects the rights of Liberal Party members to a party that is focused on winning the 2026 state election and securing a better future for all Victorians,” Deeming stated in her letter.
She added, “I am dismayed by reports that the Liberal Party (Victorian Division) is considering an approach from John Pesutto to meet his financial obligations… to now expect the party to cover Mr Pesutto’s substantial debts goes against the grain of everything we believe as Liberals.”
A speech I gave months ago when I was expelled- unpublished until now. pic.twitter.com/uGw7P9afKW
— Moira Deeming MP (@MoiraDeemingMP) December 20, 2024
Deeming called it her final attempt to prevent further damage, writing, “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 me, my husband and my children.”
Pesutto rejected the offer and instead countered with a proposal to pay $1.2 million, which Deeming refused. Sources close to Pesutto described Deeming’s offer as “unworkable,” with one Liberal figure calling the inclusion of preselection demands “pretty outrageous.”
The party’s admin committee is expected to consider a loan proposal next Thursday. Whether it will save Pesutto from bankruptcy remains uncertain.

