IBAC referral describes Moira Deeming’s offer as an example of ‘an elected parliamentarian clearly offering financial inducements in exchange for preselection’

Moira Deeming has been referred to Victoria’s anti-corruption watchdog over a five-point offer to spare John Pesutto from bankruptcy, a deal former premier Jeff Kennett has branded “blackmail”.

Liberal MP Moira Deeming has been referred to the state’s anti-corruption watchdog in a sensational development in her long-running war with ex leader John Pesutto.

The referral was lodged with the Independent Broad-based Anti-corruption Commission by a member of the public on Wednesday after it was revealed Mrs Deeming had made a last ditch offer to spare Mr Pesutto bankruptcy proceedings over the $2.3m debt he owes her in exchange for a guaranteed second term in parliament.

A member of the public referred Moira Deeming to IBAC. Picture: Andrew Henshaw

Mrs Deeming had made a last ditch offer to spare John Pesutto bankruptcy proceedings. Picture: Diego Fedele

That debt is due by June 27, but under the offer Mr Pesutto would have paid $750,000 now and been given a reprieve until March 30, 2027, to pay the balance.

In return Mrs Deeming wanted guaranteed preselection for one further term in parliament as part of five conditions which were to be met by the end of the month.

Notice of the IBAC referral was sent to Liberal MPs claiming the offer was an example of “an elected parliamentarian clearly offering financial inducements in exchange for preselection”.

“In essence, attempting to bribe her party and its members to secure her continued political career,” it said.

IBAC aims to assess all complaints within 45 days before launching formal investigations.

However the watchdog was last month criticised by a parliamentary committee for being the slowest of Victoria’s four integrity bodies to respond to complaints.

Former Premier Jeff Kennett slammed Mrs Deeming’s offer, saying it was “tantamount to blackmail”.

“For her to be saying that in fact the party should be guaranteeing her preselection shows that she clearly doesn’t understand how the party works,” he told ABC Melbourne radio on Thursday.

“You can’t try and buy your way into a seat, Liberal or Labor, it just doesn’t happen.

“You can’t ignore the processes of the party. Mrs Deeming has made an offer...that is unacceptable. I feel sorry for her, for much of this time she has been given advice which simply can’t be accepted.”

Jeff Kennett branded Deeming’s offer as “blackmail”. Picture: Glenn Hunt

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.

As part of her offer to settle the matter Mrs Deeming also called for:

• An unreserved written apology from Opposition Leader Brad Battin for her treatment over the past two years;

• The immediate payment of $750,000 Mr Pesutto has publicly stated he has raised toward his multimillion-dollar debt;

• The appointment of an independent person from outside Victoria to conduct a wholesale review into existing internal dispute resolution mechanisms; and

• A line to be drawn under the events of the past two years to ensure the party’s focus returns to constituents and the party.

It is understood Mr Pesutto offered to pay Mrs Deeming $1.2m – $1.1m less than she is owed – to finally settle the matter.

Mrs Deeming wanted guaranteed preselection for one further term in parliament as part of five conditions. Picture: Ian Currie

Senior Liberals said the other conditions would have been agreed to under that plan which was rejected by Mrs Deeming.

“I am sad that my latest attempts to settle this matter in the best interests of all parties, including the Liberal Party – were not successful,” Mrs Deeming wrote to senior Liberals on Wednesday evening.

“However, my conscience is clear; I did my very best to try and turn our collective focus away from internal matters and onto the injustices continually inflicted on Victorians by the Labor Government.”

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.

It would bring to an end months of uncertainty because of the prospect Mr Pesutto would be ineligible to sit in parliament if he couldn’t pay the massive legal bill and was bankrupted.

Such a move would trigger a potentially damaging by-election in Mr Pesutto’s Hawthorn electorate which senior party officials fear would be lost to a strong independent candidate.

Lawyers for Mrs Deeming have warned they could pursue high profile donors to Mr Pesutto’s legal defence including former premiers Jeff Kennett, Ted Baillieu and Denis Napthine.

Such a move, even if unsuccessful, could take well over 12 months.

Originally published as IBAC referral describes Moira Deeming’s offer as an example of ‘an elected parliamentarian clearly offering financial inducements in exchange for preselection’