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$2 million has gone missing from the Victorian Liberal Party

As police investigate claims the former state director of the Victorian Liberal party embezzled $1.5 million, it is still unclear if the man accused will publicly defend himself.

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

“Mr Mantach had in 2008 a liability for personal expenses to the Tasmanian division totalling $47,981.78, which was fully repaid by Mr Mantach to the division upon his departure in March of that year”, Mr Page said in a post on the Tasmanian Liberals’ Facebook page.

Mr Kroger said he did not believe the missing money influenced the 2014 election result, or that it would affect the next federal election.

“I saw someone making a comment that were white hot with anger – that’s just the start of it”.

“You’re talking a very significant portion of the money raised by the party in fundraising which appears to have been embezzled”, he said.

“We all feel completely gutted and furious”.

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

Returns to Victoria to become deputy campaign director for the Victorian Liberal Party.

Mr Mantach did not respond to attempts to contact him on yesterday.

Mr Kroger said he believed Mr Mantach had admitted wrongdoing.

The Victorian Liberals said on Thursday they were betrayed and disappointed by the theft of the money that he allegedly used to fund his lifestyle. “If the police find others, fine, but we’re not aware that anyone at the party head office or any officials had any involvement at all”.

Victorian Liberal Party Michael Kroger launched an audit into the party’s spending at the last election campaign only to discover that funds were missing.

He said he believed some of the money would be recoverable through assets purchased with the funds.

“[The amounts] ranged in the $10,000 and they added up to $1.5 million… we will recover some of the funds”, he said.

Asked in Canberra whether the missing millions validated calls for more transparency within the party, Tony Abbott said it was “a matter for the Victorian division”.

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A police spokeswoman said the investigation will be conducted by Victoria Police’s fraud and extortion squad.

Michael Kroger'He was able to get away with it for a very long time