The Victorian Liberal Party is grappling with internal disputes amidst calls for unity and reform. Philip Davis, the president of the Victorian Liberal Party since 2023, has urged members to put an end to persistent dramas and focus on restoring public trust to secure future electoral success.
Addressing Internal Issues
In a memo issued on Monday, Davis highlighted the importance of unity within the party, particularly following a court challenge surrounding a loan extended to former opposition leader John Pesutto. He emphasized, “To succeed, we must win the confidence of the people of Victoria. To win, we must bring an end to the persistent internal disputation and arguments, so often reported in the media, creating the public perception of disunity.”
The controversy stems from the Federal Court decision in December 2023, which ordered Pesutto to pay damages and $2.3 million in legal costs to MP Moira Deeming, following accusations of defamatory claims. To prevent financial insolvency and a potential byelection in the marginal seat of Hawthorn, the party’s 19-member administrative committee approved a $1.55 million loan through its investment arm, Vapold. The loan was set at a commercial variable interest rate but sparked further unrest within the party.
Legal Challenges and Divisiveness
Five committee members—Colleen Harkin, Erin Hunt, Anthony Schneider, Ian Pugh, and Marcus Li—are challenging the validity of the loan in the Supreme Court, citing constitutional violations. The statement of claim filed argues that the meeting approving the loan was conducted in bad faith and lacked transparency. Allegations have surfaced regarding secret ballots, absence of scrutineers, and inadequate notice of meeting details.
These legal proceedings have been described by Davis as a “gift for our political opponents,” diverting resources from the party’s primary objectives. He remarked, “The loan to Mr. Pesutto is just another investment in the asset portfolio, generating a return which will be used for the benefit of the party. Suggestions that the loan was undocumented or uncertain in its terms are simply false.”
Calls for Accountability
To address the growing dissent, Davis has called on members of the administrative committee who breach the code of conduct or oppose democratic decisions to resign. He stated, “These members who have shown contempt for the majority decisions of the committee, and are unable to comply with the code, should resign as members of the committee as set out in the code.”
As tensions mount, Davis is also facing a challenge from former state president Greg Mirabella in the upcoming state council. Critics of Davis view the loan process as flawed and indicative of a lack of leadership transparency. However, Davis maintains that all procedures followed were democratic and compliant.
Restoring Public Trust
Beyond this internal turmoil, Davis emphasized that the party’s success hinges on public perception. “To win the confidence of Victorians, we must present a united front and demonstrate our commitment to their interests,” he said.
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As the Victorian Liberal Party prepares for its next chapter, all eyes remain on its leadership and strategic direction.
