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Victorian Liberals Face IBAC Inquiry and Vote on $1.5 Million Loan as Pesutto’s Bankruptcy Deadline Nears

A public referral to the anti-corruption watchdog has heightened tensions ahead of a pivotal vote on a Vapold loan that could prevent John Pesutto’s insolvency

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Overview

  • Moira Deeming has been referred to the Independent Broad-based Anti-Corruption Commission over her proposal to delay John Pesutto’s $2.3 million defamation debt in exchange for a guaranteed 2026 preselection.
  • John Pesutto risks expulsion from the Victorian parliament by June 27 if he fails to pay the court-ordered legal costs awarded to Deeming after a Federal Court defamation ruling.
  • The Liberal Party’s administrative committee will vote on June 19 on a $1.5 million loan from its investment arm, Vapold, to help Pesutto settle the remaining debt and avoid a costly Hawthorn by-election.
  • Under the proposed loan, Pesutto would use his superannuation as collateral and commit to a long-term repayment schedule with commercial interest and ongoing fundraising proceeds directed toward the debt.
  • Deeming’s own preselection for the 2026 state election is under threat as local branches prepare to challenge her candidacy amid deepening party divisions.