By LIAM DURKIN
EMBATTLED Traralgon-born MP, John Pesutto looks set to continue his political career.
The former state Liberal leader was facing bankruptcy and automatic disqualification from serving in Parliament, after being unable to stump up the money from his defamation lawsuit against Liberal colleague, Moira Deeming.
The federal court found Mr Pesutto guilty last year and ordered him to pay Mr Deeming $2.3 million in damages.
He secured $500,000 himself, while $200,000 was raised from an online crowdfunding campaign.
With time running out, a group of white knights have rode in to save the Member for Hawthorn with a personal guarantee of $1.55m.
A marathon Liberal board meeting last Thursday voted to support the bailout.
“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,” party leader Brad Battin, who replaced Mr Pesutto in the top job late last year, said.
“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.”
With the money coming forward, the Liberals have avoided a potential by-election loss, which could have put them even further out of pocket.
However, given the state election is just under 18 months away, the full collateral damage could yet be uncovered.
Mr Pesutto will still need to eventually repay his debt, understood to be at a commercial interest rate of just under six per cent over 30 years.
He would be into his mid-80s by then.
Mr Pesutto was leader of the state Liberals until late last year in the wake of his defamation loss.
The loss was a dramatic turn of events, as Mr Pesutto had been leading a Resolve poll as preferred Premier over Jacinta Allan just seven weeks earlier.
Mr Pesutto grew up and went to school in Traralgon, and played soccer for Traralgon Olympians and Traralgon City.
