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Breakaway Liberals slammed by senior party member amid Pesutto loan dispute

Senior Liberal Matthew Guy has condemned a breakaway Liberal group taking the party to court, labelling their actions as “stupid” and urging them to “just get on with the job”.

Senior Liberal Matthew Guy has lashed a “stupid” breakaway group of Liberals taking the party to court over the $1.55m loan to John Pesutto.

The Victorian Liberal Party will be embroiled in yet another court challenge at 4.15pm amid an attempt to block the payment of the money which has already been made.

Administrative Committee member Colleen Harkin was on Thursday revealed as the plaintiff of the challenge in court documents released ahead of the hearing.

Ms Harkin has taken action against the party’s investment arm, Vapold – which provided Mr Pesutto’s loan – former treasurer Alan Stockdale, Karyn Sobels and Christopher Pearce.

She is seeking an injunction restraining the defendants from transferring or directing the transfer of $1.55m to the Liberal Party, Mr Pesutto, Moira Deeming or anyone else.

She also wants a declaration that the decision of the Administrative Committee last week to approve the loan was invalid.

The loan was approved to allow Mr Pesutto to honour his $2.3m debt to Mrs Deeming and avoid bankruptcy.

Mr Guy – a former Opposition Leader – slammed the group behind the Supreme Court challenge as “stupid”.

Matthew Guy has slammed the group behind the Supreme Court challenge. Picture: Aaron Francis
Matthew Guy has slammed the group behind the Supreme Court challenge. Picture: Aaron Francis

“I don’t know why it’s going to the Supreme Court, my understanding is it’s been paid, what are you gonna do injunct something that’s occurred?” he said.

“Do they want to win or what? Because I do, because Victoria needs a change, Brad does, I do, my colleagues do, and it’s about time we focused on changing the government.”

Mr Guy said it was time for the party to just “get on with the job”.

“Get on with the job of opposing the Labor government and providing an alternative to Victoria that they want and that they need,” he said.

“The state is desperate for a change of government, the state is desperate for new thinking inside Spring St.”

The explosive Supreme Court development was flagged two days ago, but paperwork wasn’t lodged with the court until Thursday morning.

The delay allowed time for the transfer of money required to clear Mr Pesutto’s debt to be made and potentially scupper any hoped of injuncting the transfer.

The Liberal Party has loaned $1.55m to John Pesutto. Picture: Nadir Kinani
The Liberal Party has loaned $1.55m to John Pesutto. Picture: Nadir Kinani

The Herald Sun understands parties connected to the loan were put on notice overnight about the pending Supreme Court matter and asked to make no financial transfers.

The fresh litigation is a blow to senior Liberals, including Mr Davis and Opposition Leader Brad Battin, who last week claimed the loan agreement would end the long-running feud between Mr Pesutto and Mrs Deeming which has plagued the party for more than two years.

Mr Pesutto was ordered to pay Mrs Deeming $2.3m in legal costs after she successfully prosecuted a defamation case against him.

It was prompted by his assertions that she had links to neo-Nazis following her attendance at a women’s rights rally on the steps of parliament in March 2023.

Mr Pesutto has already paid Mrs Deeming $315,000 in damages.

Originally published as Breakaway Liberals slammed by senior party member amid Pesutto loan dispute

Original URL: https://www.dailytelegraph.com.au/news/victoria/breakaway-liberals-slammed-by-senior-party-member-amid-pesutto-loan-dispute/news-story/3a553e17c0f8060adebce9700f7b0bfe