Moira Deeming said she was shocked to learn Liberals bailed out John Pesutto

Moira Deeming says she is shocked the Liberal Party agreed to fund a $1m bailout for John Pesutto, but is “delighted” her millionaire backer will be repaid.

Moira Deeming has responded to John Pesutto’s bailout deal saying she is “delighted” her millionaire backer will be repaid.

NSW property developer Hilton Grugeon bankrolled Mrs Deeming’s defamation case against Mr Pesutto, who owes her $2.3m in legal costs which will be repaid to Mr Grugeon.

Mrs Deeming last week attempted to negotiate a last-minute plan to settle the matter and effectively loan Mr Pesutto more than $1m by extending by several years his deadline to clear the debt.

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

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

Moira Deeming said she was shocked at the party’s decision to loan the money. Picture: NAndrew Henshaw

“My understanding was that senior Liberal MPs and members of admin supported the original five point peace plan and Mr Pesutto himself accepted those terms (including my guaranteed preselection) — in exchange for my agreement to pay over $1m of his debt,”

she said.

“I said no (to the counter offer). However, I made it clear on Sunday to those same senior Liberals, that I was genuine in my intentions and that if Mr Pesutto needed extended financial terms, so long as the loan was guaranteed by private individuals, I’d have approved it.

“So to find that Mr Pesutto instead arranged a loan from the Party, using Party money, on almost exactly the same financial terms that I’d offered, was a shock.

“Nevertheless, I am delighted that Mr Grugeon will be reimbursed for his generous loan which ultimately saved my family.

“Without that loan, I’d have been bankrupted as a declared Nazi sympathiser and my life would have been over.

“I am grateful to all who supported me and look forward to concentrating my efforts on fighting just as hard for the rights of all Victorians.”

Mrs Deeming last night posted on social media implying she felt like a victim of institutional abuse because of her treatment by the Victorian Liberal Party.

Opposition leader Brad Battin refused to be drawn on the claims.

But Mr revealed he supported the controversial bailout plan to save John Pesutto’s political career in a move set to inflame tensions within his party room.

Senior Liberals said the admission would endanger the stability of Mr Battin’s leadership unless he could quickly placate angry colleagues from within the party’s conservative bloc who feel he has picked sides in the long running war between Mr Pesutto and Mrs Deeming.

But Mr Battin said his decision had nothing to do with personalities.

Brad Battin said he supported to decision to help the party move forward. Picture: Aaron Francis

“I supported the Party’s Administrative Committee decision to pay Mrs Deeming the $1.55 million owed to her by Mr Pesutto, to satisfy the Federal Court costs order following its decision that Mr Pesutto had defamed Mrs Deeming,” he said in a statement on Friday morning.

“This decision was not about personalities or past disputes – it was about protecting the interests of the people we serve and ensuring our Party can continue its important work.

“The loan arrangement ensures the Party avoids further financial and reputational damage, allows us to put this matter behind us, and refocuses our efforts where they belong – holding Australia’s worst government to account and building a stronger, fairer future for Victoria.

“Throughout this process, I have acted in accordance with the rules, maintained my impartiality, and ensured the confidentiality, welfare, and dignity of my colleagues.

“With this matter resolved, our focus is firmly on the future. United, disciplined and determined, we are focused on earning the trust of Victorians and winning government in 2026.”

Later on Friday, Mr Battin said he was confident he could now unite the party, and labelled accusations that he had taken Mr Pesutto’s side “factually wrong”.

John Pesutto ahead the party meeting to decide his fate. Picture: Nadir Kinani

The move allows Mr Pesutto to repay Mrs Deeming the $2.3m in legal costs he owes her and avoid bankruptcy that would have seen him ineligible to sit in parliament.

It is understood Mrs Deeming first learnt of the deal when party president Phil Davis sent a bulk email to members shortly before 9pm on Thursday.

Conservative MPs and members were vehemently opposed to Mr Pesutto being bailed out by the party.

“Realistically the main challenge now is the conservative block needs to be convinced about the political pragmatism of this deal,” one senior Liberal said.

“Can Brad bring the conservatives back into line and convince them this was worth it?”

Mrs Deeming has said she had felt pressured to settle her matter out of court for the good of the party but said she pursued a public defamation trial amid repeated refusals by Mr Pesutto to publicly apologise for claiming she had associations with Nazis after a group of the far-Right extremists gatecrashed a women’s rights rally she was speaking at in March 2023.

Originally published as Moira Deeming said she was shocked to learn Liberals bailed out John Pesutto