Deadline to pay: Deeming moves to bankrupt Pesutto | The Australian

Lawyers for Moira Deeming have launched bankruptcy proceedings against former Victorian Liberal leader John Pesutto over his failure to pay court-ordered costs.

Mr Pesutto now has 21 days to pay the debt in full or negotiate a payment plan, or risk being declared bankrupt – a move that would force him from parliament and trigger a high-stakes by-­election in the marginal seat of Hawthorn.

If declared bankrupt, Mr Pesutto would be ineligible to serve as an MP and plunge the state Liberals into further turmoil by placing his electorate at risk of falling to Labor.

One-third of the $2.3m has been raised so far, including $200,000 from online crowd-funding and $500,000 that Mr Pesutto has secured privately.

Former Victorian premier Jeff Kennett issued a last-ditch plea to the Liberal Party’s administrative committee to consider loaning Mr Pesutto the funds so he can avoid bankruptcy.

The escalation comes after the NSW property developer who bankrolled Mrs Deeming’s legal fees, Hilton Grugeon, pledged to pay whatever it took to pursue Mr Pesutto’s donors – including three former Victorian premiers – should he be unable to pay his costs bill.

The Australian revealed last week that a letter from Mrs Deeming’s lawyers had flagged seeking non-party cost orders against those who donated to Mr Pesutto’s failed defence should he declare bankruptcy.

In a letter published last week, Mrs Deeming said the decision to initiate bankruptcy proceedings was not one she took lightly. “My goal is simple: to ensure I am reimbursed so I can repay that loan, as I promised I would,” she said. “After being falsely accused of bigotry, of knowingly associating with Nazis – claims the court found to be defamatory – I faced a torrent of public and private abuse, including rape threats, stalking and personal and professional humili­ation and isolation. Sadly, I was not the only innocent woman who suffered as a result of the campaign to expel me.

“This moment should never have come to pass. Since it has, let it stand as a reckoning – not just for one individual, but for a culture of political brutality that must end.

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