Several Victorian Liberals have accused the party of “hypocrisy” after it paid lawyers to represent its administrative wing in an unfair dismissal claim, while so far declining to save former party leader John Pesutto from bankruptcy.
On Monday, lawyers for Victorian Liberal MP Moira Deeming initiated bankruptcy proceedings against Pesutto after he failed to meet a deadline to pay her $2.3m in legal costs. Pesutto has less than 21 days to pay, enter into a payment agreement or face bankruptcy, which would lead to a byelection in his seat of Hawthorn.
Pesutto’s supporters have written to the administrative committee urging them to help him pay Deeming’s legal costs. So far, no meeting has been called to discuss these requests. Any deal would require the authorisation of the 19-person committee.
But sources close to Pesutto are increasingly optimistic a loan deal may be struck in coming days, partially funded by the party and its associated entities. They say more than $1m has been pledged by private donors so far, which would reduce the size of the loan.
On the same day as the bankruptcy proceedings were initiated, members of the committee discussed the engagement of law firm MinterEllison to represent them in response to the unfair dismissal claim lodged by Nadine Jones, the former director of the party’s fundraising arm, Enterprise Victoria.
The engagement of MinterEllison has frustrated some Liberal sources who believe the party should be doing more to help Pesutto. They argue it is “unfair” and “hypocritical” for the party to pay the legal costs of administration officials, but not its former parliamentary leader.
Under the Victorian Liberal party’s constitution, members of the administrative committee are indemnified for actions taken on behalf of the party. But the same protection is not afforded to senior MPs in the parliamentary wing, including when the opposition leader is performing their duties in the party room.
Emails verified by Guardian Australia show some members of the administrative committee sought different legal representation to be paid for by the party.
“It’s hard to understand how those most opposed to party funds being used for John Pesutto’s legal defence can now argue that the same funds should be used to fund two or more separate legal teams to defend themselves,” one Liberal source said“It’s hard to understand how those most opposed to party funds being used for John Pesutto’s legal defence can now argue that the same funds should be used to fund two or more separate legal teams to defend themselves,” one Liberal source said.
“Those administrative members insisting on being separately represented should apply a consistent standard, or explain to members why they believe they’re more deserving of party funds.”
One Liberal source, who declined to be named so they could speak freely, said there was a push for the parliamentary leadership team to be indemnified as early as 2023. They said those efforts went nowhere.
They questioned why anyone would want to take on a leadership position in the party and carry out their responsibilities, including making difficult party room decisions, without the legal protection in the current political climate.
The committee includes the Victorian opposition leader, Brad Battin, and the federal shadow minister for energy and emissions, Dan Tehan. Both were contacted for comment.
Some members of the administrative wing, who declined to be named, said the engagement of MinterEllison was not hypocritical. They said the matter before the Fair Work Commission was a dispute over alleged workplace misconduct, while the Pesutto matter stemmed from multiple defamatory statements.
The complaint before the Fair Work Commission was submitted by Jones, who alleges she was stood down a day after a fundraising dinner featuring Gina Rinehart. Jones alleges the party’s president wrongly introduced Rinehart as the sponsor of Netball Australia and that she was unfairly punished by the party for the “embarrassing gaffe”.
Liberal party sources reject any suggestion that Jones was fired for anything other than alleged misconduct.
