John Pesutto Avoids Bankruptcy After $2.3 Million Payment to Moira Deeming

John Pesutto, former Victorian opposition leader, has avoided bankruptcy by settling a $2.3 million legal debt owed to Liberal MP Moira Deeming following a defamation lawsuit. The debt arose after Pesutto defamed Deeming by accusing her of associating with neo-Nazis and white supremacists, resulting in a court order for Pesutto to pay damages and Deeming's legal fees. Unable to cover the full amount alone, Pesutto raised $750,000 through fundraising, while a Liberal Party–aligned investment fund called Vapold paid $1.55 million, which Pesutto must repay with interest. This settlement prevented Pesutto's bankruptcy and a consequent by-election, as Victorian law disqualifies bankrupt individuals from serving in parliament. The payment has sparked controversy within the Liberal Party, with some members opposing the bailout and dragging the issue to court, while critics like Peta Credlin have blamed Pesutto's actions on irrational fear of political opponents. The saga highlights internal tensions within the party and the financial and political consequences of intra-party conflicts.