Victorian Liberals remain divided on saving John Pesutto

Victorian Liberals opposed to the party bailing out former leader John Pesutto say time is running out for the administrative committee to be briefed on a rescue package.

Former Victorian Liberal leader John Pesutto. Picture: Jake Nowakowski

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

Victorian Liberals opposed to the party bailing out former leader John Pesutto say time is running out for the administrative committee to be briefed on details and legal issues surrounding a rescue package.

While influential figures within the party such as former premier Jeff Kennett and a number of state MPs – both supporters and detractors of Mr Pesutto – support a financial lifeline to resolve the crisis, some figures on the governing body are hardening their ­opposition to a deal.

One member of the 19-strong administrative committee said time was running out for the proposal for the party, via its cashed-up investment arm Vapold Pty Ltd, to lend Mr Pesutto about $1.5m to be debated at this week’s meeting, which is expected to be scheduled for Thursday.

“I cannot see how it can now be discussed on Thursday … it would not be reasonable to discuss such a contentious and potentially unconstitutional matter without proper notice and due diligence. It’s too late,” the administrative committee member, who asked to remain anonymous, said.

Mr Pesutto is believed to have raised around $800,000 towards covering the $2.3m court-ordered costs racked up by Liberal MP Moira Deeming during her successful defamation action against the then opposition leader.

While resolving the crisis before it bankrupts Mr Pesutto – forcing him from parliament and triggering an unwanted by-­election in his seat of Hawthorn – is opposed by sections of the party, a deal commands support, albeit some of it grudging, as a resolution to the crisis.

A Liberal figure identified one of the problems with the proposal was the bail out would eat into ­Vapold’s nest egg, which is ­estimated to be valued between $40m and $45m. The bulk of this money was generated by the $37m sale of the party’s traditional headquarters at 104 Exhibition Street in the CBD.

“This won’t be donor money, it’s money generated by the sale of 104,” the figure said.

Mrs Deeming sued Mr Pesutto in the Federal Court over alle­gations he falsely portrayed her as a Nazi sympathiser after she helped organise and attended a Let Women Speak rally that was gatecrashed by neo-Nazis.

A bankruptcy notice was served on Mr Pesutto late last week, meaning the deadline to pay the $2.3m bill falls due around June 27. The former opposition leader has already paid Mrs Deeming more than $300,000 in damages awarded by the Federal Court.

The Pesutto camp remains “hopeful” a deal will be agreed on that saves the Liberal MP from bankruptcy and being forced from parliament.