Senior federal Liberal Eric Abetz has distanced himself from the Mantach funds scandal, as the Australian Electoral Commission confirms it is examining a $48,000 debt repaid to the party.
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Senator Abetz has been under scrutiny since his party colleague, Tasmanian Premier Will Hodgman, said the Leader for the Government in the Senate was advised of a debt incurred by disgraced former party director Damien Mantach.
Mr Mantach's 2008 debt was covered up, according to Labor, and he was able to quit the Tasmanian post, later become the Victorian Liberal director and embezzle $1.5 million.
Senator Abetz issued a statement late on Thursday in which he confirmed the then president of the Tasmanian branch, Dale Archer, told him in March 2008 of a "potential inappropriate use by the state director of his credit card".
"The meeting on 5 March was between the state president and myself only," Senator Abetz said.
"No advice was sought or offered. No sum of money was mentioned. This is not surprising, given that an investigation was still to occur."
Senator Abetz said there was a state executive meeting on March 15 where Mr Mantach's resignation was reported.
"I was interstate and was an apology for that meeting," he said. "My knowledge until recently was that Mr Mantach had resigned and the expense issues had been satisfactorily resolved.
"...This was a matter for the organisation to deal with in 2008 and it remains an organisational matter."
State Labor leader Bryan Green has pursued in the Tasmanian Parliament what he has calls "black and white proof of a cover-up" over the debt.
Mr Green asked the AEC to investigate the debt repayment, which he said was a potential breach of electoral law demanding the disclosure of "all money" received by a political party over a $10,000 threshold.
The AEC's chief legal officer, Paul Pirani, replied to Mr Green on Thursday: "I note the specific concerns that you raised in your letter and I can assure you that this matter is under consideration by the AEC."
Mr Hodgman, too, has distanced himself from the affair, saying it is the domain of the state director.
The current director, Sam McQuestin, who Mr Green said was honorary treasurer when Mr Mantach incurred the debt, has been unavailable for comment.
