Victorian Liberal MP Moira Deeming has been referred to the state’s anti-corruption body, IBAC, following explosive allegations she offered to withdraw bankruptcy proceedings against former Liberal leader John Pesutto in exchange for guaranteed preselection for another term in parliament.
The referral, made by a member of the public, claims the proposal constitutes “a clear financial inducement” from an elected official in return for political favour.
According to reports, Deeming was willing to accept a partial payment of $750,000 now, delaying the remainder of the $2.3 million debt until March 2027. In return, she demanded five conditions, the most significant being guaranteed preselection.
The scandal, which has rocked the Victorian Liberal Party, comes amid internal tensions following Deeming’s legal battle with Pesutto, who now risks bankruptcy. If declared bankrupt before June 27, Pesutto would be disqualified from Parliament, potentially triggering a by-election in his Hawthorn seat — a race party insiders fear they could lose to an independent.
Deeming’s other demands included a public apology from new Opposition Leader Brad Battin, and an external review of internal dispute mechanisms. While Pesutto counter-offered $1.2 million, Deeming rejected the deal.
IBAC has yet to launch a formal investigation but is expected to review the referral within 45 days. Senior Liberals are scrambling to secure a bailout loan for Pesutto, fearing long-term political fallout.
Meanwhile, Deeming’s legal team has signalled the possibility of pursuing donations made to Pesutto’s legal defence fund, potentially targeting high-profile figures like former premiers Jeff Kennett and Denis Napthine — a move that could prolong the saga well into next year’s state election.
