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Victorian Liberal Party Seeks to Rescue John Pesutto from Financial Ruin

Strategic Insights

— 1 min read

The Victorian Liberal Party is contemplating a bailout plan to save its former leader, John Pesutto, from financial ruin. The proposal involves Vapold, the party's investment arm, providing a $1.5 million loan to Pesutto to cover his outstanding legal costs, which amount to $2.3 million. In exchange, Pesutto would offer his superannuation savings as collateral and agree to a long-term repayment plan at a commercial interest rate. The move aims to prevent Pesutto from being declared bankrupt and avoid a potentially costly byelection in a marginal electorate.

Key Takeaways:

  • The party's plan involves Vapold providing a $1.5 million loan to Pesutto to cover his outstanding legal costs, which amount to $2.3 million.
  • Pesutto would offer his superannuation savings as collateral and agree to a long-term repayment plan at a commercial interest rate.
  • The proposal aims to prevent Pesutto from being declared bankrupt and avoid a potentially costly byelection in a marginal electorate.
  • The party's constitution prohibits party funds being used for the benefit of individual members.
  • A majority of administrative committee members, including former premiers Jeff Kennett, Denis Napthine, and Ted Baillieu, oppose using party funds to cover Pesutto's legal costs.
  • The plan requires the support of a majority of administrative committee members on June 19 to proceed.

Statistics:

  • Pesutto owes $2.3 million in outstanding legal costs to Moira Deeming.
  • The proposed loan amount from Vapold is $1.5 million.
  • Pesutto's backbencher's salary is just over $200,000.
  • The commercial interest rate for the loan has not been disclosed.
  • There are seven members implacably opposed to using party funds to get Pesutto out of his legal jam.
  • The party's administrative committee has been deluged by emails from outraged rank and file party members since Jeff Kennett wrote to the committee two weeks ago defending Pesutto.

Sources:

  • Chip Le Grand, "Victorian Liberal Party considers $1.5 million bailout for John Pesutto", The Age, available at [www.theage.com.au](http://www.theage.com.au)
  • Unnamed party figure, quoted in Chip Le Grand, "Victorian Liberal Party considers $1.5 million bailout for John Pesutto", The Age

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