‘The entire party is imploding’: Groth, Pesutto, Deeming turning Liberal headache into a migraine

Opposition Leader Brad Battin has admitted internal tensions have riven his party room as his predecessor, John Pesutto, missed a deadline to pay $2.3 million in legal costs he owes colleague Moira Deeming after her successful defamation case.

Only a third of the money has been raised, including about $500,000 Pesutto previously said he had secured himself, and $200,000 from an online crowdfunding campaign.

Once a creditor’s petition is lodged on Monday, Pesutto will have 21 days to stump up the rest or be forced out of parliament and his marginal seat of Hawthorn.

Opposition Leader Brad Battin on Friday.Credit: Wayne Taylor

The crisis, which threatens to embroil a list of other party figures, has prompted members of the party’s administrative committee to start discussing a party bail-out for Pesutto.

Battin, a member of the committee, refused to say whether he would support such a resolution. “My priority is around getting a resolution that we have this team going to the next election,” Battin said on Friday.

Battin was also forced to defend his deputy, Sam Groth, over reports he misled colleague Georgie Crozier to access her chauffeur-driven car after a fundraiser at the Australian Open last year.

Deputy Liberal leader Sam Groth arrives at the opposition’s budget reply lunch on Friday.Credit: Simon Schluter

The Herald Sun on Friday reported Groth had asked to borrow Crozier’s driver for work reasons but used the car to get home, about 100 kilometres away in Rye, after a fundraiser at the tennis.

Crozier, who was leader of the opposition in the upper house at the time, told reporters she wanted answers.

“I’m incredibly disappointed,” Crozier said outside the opposition’s budget reply lunch. “Sam needs to explain his actions.”

Groth, the opposition’s spokesman for tourism, sport, events and hospitality, said he attended the 2024 Australian Open in both an official and personal capacity.

Opposition health spokeswoman Georgie Crozier said Groth had to explain himself.Credit: Simon Schluter

“I was at the event to meet various stakeholders and attend meetings before being part of a fundraising initiative,” Groth said in a statement on Friday.

“Everything was and is above board. It has all been officially disclosed. There is nothing to hide.”

Battin said he was confident Groth’s journey was within the rules, but said he hadn’t spoken to his deputy about it or asked him what official work was done to justify the use of taxpayer resources.

The episode has added to the pressure on Battin’s leadership. He replaced Pesutto as leader last December after Deeming won an emphatic judgment against Pesutto in the Federal Court.

John Pesutto after a party room meeting on Tuesday.Credit: Wayne Taylor

Battin’s leadership is reliant on support from Deeming’s backers.

“I think it’s pretty obvious we’ve had some tensions in the party at the moment. And I’m continuing to work through that,” Battin said. “As a leader, it’s not always easy, and I’ll take on the challenge that’s put forward.

“I have to make sure that I can work with each and every one of my members so we can get to the position that we can be a genuine alternative government.”

One Liberal MP, speaking anonymously about the party’s internal embarrassments, said the team was “a shit show”.

“The entire party is imploding. The party room is imploding. The leader’s office is imploding. Everything is imploding.”

The comment drew a sharp response from shadow treasurer James Newbury. “Only weak cowards comment anonymously. Every good Liberal wants to end this Labor government, and white-anting only helps Labor. Enough is enough. Back our team or leave.”

The Victorian division’s administrative committee, which serves as the party’s governing board, has authority to approve the use of party funds to settle Pesutto’s legal bill and avoid a byelection in Hawthorn, which is certain to be targeted by a teal candidate.

A bankrupt cannot lawfully sit in parliament. Attempts to get the party or its investment arm, the Cormack Foundation, to financially contribute have so far been unsuccessful. But they are yet to formally reject a request, three sources with knowledge of the talks but unable to speak publicly said.

Moira Deeming leaving a Liberal party room meeting on Tuesday.Credit: Wayne Taylor

A meeting of the administrative committee has not been set, but members were being sounded out about the possibility this week, the sources said.

Two sources unable to speak publicly said a senior member of the Hawthorn electorate conference wrote to the party’s administrative committee to seek support for Pesutto, including through a loan.

Views are split among those who hold no sympathy for Pesutto and don’t want to use party funds to fix his mistakes, and those who believe the matter must be resolved for the good of the party, several Liberal figures have told The Age, speaking anonymously about confidential discussions.

The Federal Court in December ordered Pesutto to pay Deeming $315,000 in damages for repeatedly and falsely implying she associated with neo-Nazis. The court this month ordered he pay $2.3 million for her legal costs, which he is yet to pay, on top of outstanding bills for his own lawyers.

Last week, Deeming’s lawyers, Giles/George, gave notice they would subpoena communications to pursue costs from Pesutto’s donors if he is bankrupted. The letter named opposition frontbenchers Georgie Crozier and David Southwick as well as former Liberal premiers Jeff Kennett, Ted Baillieu and Denis Napthine, among others.

Kennett, who blasted weak Liberal leadership for failing to step in, said he provided a “token” donation. Pesutto said the support he received from those named was modest.

More private emails and text messages could be aired if third parties are pursued for costs, which could push the saga into the election year. Defending Hawthorn would also cost the Liberal Party upwards of $500,000 or as much as $1 million.

Pesutto can’t lose his family home in the process, as it is in the name of his wife, Betty.

Deeming, in a statement earlier this week, said there were no lawsuits against anyone other than Pesutto and that it appeared he ran the case without the necessary money.

“The letter simply seeks to understand who aided him to do so because I may have to seek cost recovery through them,” she said.

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