A prominent Member of Parliament for the Liberal Party has been formally disendorsed, effectively ending her candidacy for the upcoming state election following a contentious internal dispute. The unanimous decision by the party's state executive came swiftly, reportedly taking just 13 minutes to finalize, confirming that while she remains an MP for now, she will not represent the party in the next electoral cycle.

The disendorsement stems primarily from an alleged incident in May at a community event where MP Moira Deeming claimed her partyroom colleague, Matthew Guy, had assaulted her. Despite a review of CCTV footage by law enforcement which concluded no offence had been detected, Ms. Deeming steadfastly refused to issue an apology, maintaining that her allegation was made in good faith. This stance put her at odds with the party leadership, who had rallied behind Mr. Guy.

Sources indicate the party had attempted to address the issue weeks prior, but Ms. Deeming had sought an injunction in the Supreme Court, a legal action she later withdrew. The Liberal Party, including Opposition Leader Jess Wilson, had publicly backed Mr. Guy's assertion of innocence and his demand for an apology from Ms. Deeming. Visual evidence from the May interaction reportedly showed Mr. Guy placing a hand on Ms. Deeming's back during a conversation at the crowded function.

In a detailed 12-page statement presented to the state executive earlier in the week, Ms. Deeming reiterated her claims, alleging she was "grabbed, held and pulled with force" by Mr. Guy, causing her "pain and distress." She argued that her removal for making such a complaint would establish an undesirable precedent within the party.

Following the executive's decision, the Liberal Party issued a statement expressing gratitude for Ms. Deeming's service and declaring the matter resolved. Opposition Leader Jess Wilson echoed this sentiment, emphasizing that the focus would now shift entirely to the upcoming November election. Ms. Deeming has yet to publicly comment on the outcome.

Financial Challenges Compound Political Woes

The political turbulence for Ms. Deeming is further complicated by significant financial pressures, with reports indicating she is facing the possibility of bankruptcy. This dire situation arises from an outstanding debt of $1.55 million in legal costs, stemming from a successful defamation action she pursued against former opposition leader John Pesutto earlier in the parliamentary term.

NSW businessman Hilton Grugeon, who provided the loan to fund Ms. Deeming's legal proceedings, is now seeking repayment. However, Ms. Deeming has been unable to settle this debt due to a contentious Liberal Party loan made to Mr. Pesutto, which was intended to cover his legal costs and remains embroiled in a separate court challenge.

The Liberal Party had reportedly approved a $1.55 million loan to Mr. Pesutto last year, a move designed to shield him from bankruptcy and avert a potential by-election in his marginal seat. However, a faction of current and former members of the party's state executive has launched a Supreme Court challenge against the legitimacy of this loan. Consequently, the funds intended for Mr. Pesutto, and ultimately Ms. Deeming, are currently held in a trust account by Ms. Deeming's lawyers, pending the court's resolution.

Mr. Grugeon has expressed a desire for Ms. Deeming to be disendorsed, not out of hostility, but from a belief that the party has treated her unfairly. He stated that his efforts to recoup his loan have been hindered by internal Liberal Party disputes and believes that if his actions lead to her bankruptcy, it "would at least help her to get clear of everything that's led her to this position." He also suggested that this scenario could potentially make Mr. Pesutto's donors immediately liable for the costs. A declaration of bankruptcy would automatically force Ms. Deeming's removal from parliament, adding another layer of uncertainty to her political future.