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Defending her move to bankrupt John Pesutto, Moira Deeming has explained it’s not about triumph but keeping a promise to repay supporters.

Moira Deeming has initiated bankruptcy proceedings against former Victorian Liberal leader John Pesutto, after he failed to pay $2.3 million in court-ordered legal costs by the deadline of Friday, 30 May.

In a statement to the Herald Sun, Deeming said her decision was not about vengeance, but about honouring a debt she owes to those who financed her legal case. She stressed that one of the Liberal Party’s foundational values – equality before the law – must apply to all, regardless of power, wealth or position.

“No individual should be excused for breaking the law just because they are ‘important’ or ‘rich’ or ‘powerful’”, she said.

“This is not a decision I take lightly, nor with any sense of triumph. My goal is simple: to ensure that I am reimbursed so that I can repay that loan, as I promised I would.”

‘Harrowing Journey’: Moira Deeming

Deeming describes “the past two years” as a “harrowing journey for me, my husband and our four children” since the ‘Let Women Speak’ rally in March 2023.

“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.

“There is no justification – legal, moral or political – for defaming and vilifying an innocent person.

“Even after I was vindicated by the court, Mr Pesutto refused to make amends.”

Deeming states that she “offered early in the proceedings to accept a settlement for $99,000 without an apology.”

“For reasons only known to himself, Mr Pesutto rejected that offer. And due to this, the court awarded me costs at the highest level, ‘indemnity costs’, from that time”.

The $99,000 out-of-court settlement would have prevented the costly legal action that now threatens Pesutto with bankruptcy.

Despite her legal victory, Deeming was denied re-entry to the parliamentary Liberal party room – a decision that Mr Pesutto himself helped secure with his casting vote. She accuses him and his allies of continuing to portray themselves as victims, even after the judgment.

“This speaks volumes about their character,” she said.

“Let this stand as a reckoning – not just for one individual, but for a culture of political brutality that must end.”

In further comments on X, Deeming addressed “the ‘commentators’ indulging in public victim-blaming, such as labelling me ‘divisive’, ‘selfish’, ‘damaging/destructive’, ‘petty’, ‘cyclone Moira’, etc.”

“If you interpret a politician being held to account as some kind of political or democratic disaster, maybe you are the problem – not me”, she said.

💁🏻‍♀️For the “commentators” indulging in public victim-blaming, such as labeling me☺️ ‘divisive’, ‘selfish’, ‘damaging/destructive’, ‘petty’, ‘cylone Moira’, etc’👇🏻
💡If you interpret a politician being held to account as some kind a political or democratic disaster, maybe you are… pic.twitter.com/wZq6ocQKk0

— Moira Deeming MP (@MoiraDeemingMP) May 31, 2025

Political Fallout

The bankruptcy notice, filed Monday, 2 June, in the Federal Court, gives Mr Pesutto 21 days to pay the full $2.3 million or enter a repayment agreement. If he fails, he could be declared bankrupt – automatically disqualifying him from parliament and triggering a potentially disastrous by-election in the marginal seat of Hawthorn.

Mr Pesutto confirmed receipt of the notice, stating, “I will be doing everything possible over the next 21 days to pay the amount ordered by the Federal Court.”

So far, approximately $700,000 has been raised, including $200,000 through online crowd-funding and $500,000 from private sources. But the $1.6 million shortfall remains significant.

‘Wrong’: Jeff Kennett

Former Victorian Premier Jeff Kennett has urged the Liberal Party’s administrative committee to consider helping Mr Pesutto cover the debt.

In a letter to senior party figures – including president Phil Davis, state leader Brad Battin and federal MP Dan Tehan – Kennett pleaded for the party to loan or cover his costs.

Speaking to The Australian, Kennett said,

“Yes, the court decided some of his words were inappropriate, in fact defamatory.

“But that does not change the principle of the party’s need to back our own.

“It is wrong that one of our colleagues should be threatened with bankruptcy for doing their job.”

The former Victorian premier’s plea reflects a divide within the Liberal party – between those urging institutional support for Pesutto, and those, like Deeming, who argue that justice must stand above loyalty to faction or leadership.

The donor who backed Deeming’s legal case, NSW property developer Hilton Grugeon, has pledged to pursue cost orders against Mr Pesutto’s donors – including three former Victorian premiers – if the debt remains unpaid and bankruptcy is declared.

🔥 “This is all part of an ongoing smear campaign against a woman who was done over by her own leader, who then took him on and won. And the Liberals who are prosecuting it should be ashamed of themselves.

🔥 “This is all so unfortunate, so unnecessary, but this is… pic.twitter.com/IaU4RMBrz8

— Rachael Wong (@RachaelWongAus) May 29, 2025

‘Equality Before the Law’

Deeming singled out newly elected state Liberal leader Brad Battin as a figure of integrity throughout the crisis.

“He did not try to manipulate or punish me. He refused to allow factional games to dictate justice.”

She also praised rank-and-file Liberals who, she says, “kept the party machine honest” even when senior figures did not.

Deeming states that the decision to initiate bankruptcy proceedings is regrettable. “This moment should never have come to pass”, she wrote.

“But since it has, let it stand as a reckoning, not just for one individual, but for a culture of political brutality that must end.”

“No man is above the law.”

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Image: Screenshot of YouTube/7 News and YouTube/Sky News.