Multi-millionaire developer — who backed Moira Deeming’s defo case against John Pesutto — referred to IBAC
The Victorian Liberal Party is facing the prospect of a second corruption probe in a move set to prolong the war between MPs John Pesutto and Moira Deeming, with a multi-millionaire developer referred to IBAC.
Victoria
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The Victorian Liberal Party is facing the prospect of a second corruption probe in a move set to prolong the ongoing war between MPs John Pesutto and Moira Deeming.
The Sunday Herald Sun can reveal multi-millionaire NSW developer Hilton Grugeon — who backed Mrs Deeming’s successful defamation case against the former Opposition Leader — has been referred to the Independent Broad-based Anti-corruption Commission over his attempts to block Mr Pesutto from challenging for the leadership of the party for at least three years.
It comes after Mrs Deeming was last week referred to IBAC over an eleventh hour offer she made to Mr Pesutto to settle the $2.3m in court awarded legal costs he owes her.
Mr Pesutto is facing the prospect of being declared bankrupt, which would make him ineligible to sit in parliament and end his political career, unless he pays Mrs Deeming by June 27.
Mr Grugeon, who is trying to recoup the $2.3m he loaned to Mrs Deeming, last week offered to spare Mr Pesutto from bankruptcy proceedings if he agreed to pay $1.3m now and the remainder over the next three years under a loan arrangement.
But the loan would be immediately defaulted if Mr Pesutto, who has privately discussed his ongoing leadership ambitions, challenged for the leadership in that time.
The attempt to block Mr Pesutto from again leading the party, and consequently becoming Opposition Leader, was central to the fresh IBAC referral that was lodged on Saturday.
“While the position of political party leader is not, in itself, a public office, the Office of the Leader of the Opposition in Victoria is a distinct public office recognised by the parliament of Victoria,” it said.
“It is a role that comes with an additional taxpayer-funded salary, a separate office, additional staff and other resources such as a driver and car.
“The offer made by Mr Grugeon sought to prevent Mr Pesutto from seeking to attain this public office.
“This transforms the nature of the interference from a party-political matter to one concerning the exercise of public functions and public resources.”
The referral also raised concerns about Mr Grugeon attempting to influence a public officer and breaching public trust.
“Mr Grugeon’s offer appears to be an attempt to dishonestly influence Mr Pesutto’s performance of his public functions, namely, whether or not he seeks to accept a public office provided for under the Parliamentary Salaries, Allowances and Superannuation Act 1968 and supported by public funds,” it said.
This may constitute an attempt to pervert the proper exercise of public power or an inducement for a public officer to fail to discharge a public function, contrary to the public interest.
“By seeking to interfere with who holds the Office of the Leader of the Opposition through a private, coercive financial arrangement, Mr Grugeon may have engaged in conduct that amounts to a breach of public trust. This includes conduct that compromises the independence, accountability, or integrity of the functioning of parliament of Victoria.
“This is not a matter of internal party dynamics or factional politics alone.
“It is a direct attempt by a private individual to manipulate access to a significant public office, the alternate Premier of Victoria, that is provided for with significant public resources. It therefore falls squarely within the matters IBAC is empowered to assess under its jurisdiction.”
A full investigation could haunt the Liberal Party for up to 12 months _ the limit IBAC tries to apply to any investigation _ five months before next year’s election.
Senior Liberals have been working to lock in a bail out deal for Mr Pesutto that would see him loaned up to $1.5m to allow him to honour the debt which is due in under three weeks.
There are fears that an IBAC investigation could expose damning evidence that could significantly impact the party’s hopes of winning next year’s state election.
Mr Grugeon was contacted for comment.
Originally published as Multi-millionaire developer — who backed Moira Deeming’s defo case against John Pesutto — referred to IBAC
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