Victorian police investigate claims

More than $1m was allegedly stolen from the Victorian Liberal party over two years in an apparent fraud that has MPs “gutted and furious”.

The questions have spread to the federal party, with Mr Mantach’s history of being forced to pay $47,000 back to the Tasmanian division apparently news to everyone in Victoria.

Mr Mantach is now the only person implicated.

Finger pointing has begun within the party, with the Liberals’ federal director – and husband of Prime Minister Tony Abbott’s chief-of-staff, Peta Credlin – Brian Loughnane reportedly being blamed for his appointment.

Liberal Party records show that party money flowed illegally through false invoices to a company called Campaign Mail Logistics.

The money is alleged to have vanished over four years to fund Mr Mantach’s lifestyle.

Victoria Police have launched an investigation.

He had the final say on budget line items, such as polling research, that the party treasurer was not allowed to see.

“It would not be appropriate to comment any further at this time”. He has refused to comment on the grounds that the matter was subject to a police investigation.

“I know Damien Mantach well”.

Victorian Liberals have sought to blame the Mantach scandal on the failure of the Tasmanian Liberals to inform them of the extent of Mantach’s credit card problem.

Mr Weston says money paid to him by Mr Mantach was a compassionate offer of help, not hush money. He referred Fairfax Media to former president, Dale Archer.

But a senior Tasmanian Liberal insider from 2008 reacted angrily to claims Mantach had been protected.

The pair allegedly offered assistance to Tristan Weston, who resigned as an adviser to then deputy premier Peter Ryan over a plot to undermine former police chief commissioner Simon Overland. “So who recommended him?” He became the state director of the Victorian branch in the year 2011.

But Mr Loughnane sought to put the blame back on the Victorian branch.

“It should never have happened”, he said.

“We’re not aware that anyone at the party head office or any officials had any involvement at all”, he said.

Liberal leader Matthew Guy said the party was furious at what he called a “pretty basic effort at embezzlement”.

But after spending millions in federal money on a royal commission to attack Labor’s union funding base, the Liberals have brought this round of scrutiny upon themselves.

Liberal Party president Michael Kroger said Mr Mantach had admitted to wrongdoing.

Vic detectives will investigate the alleged embezzlement of $1.5 million of Liberal party funds.

Internal investigations revealed irregularities which have now been turned over to police by the state administrative committee.