Liberal taxpayer ripoff still unresolved

The federal government has yet to recover any money allegedly defrauded by a former Victorian Liberal state director.

Damien Mantach told MPs to use a mailing business that then followed his advice to over-charge MPs.

Victorian Liberal president Michael Kroger wrote to members advising the party had sent cheques totalling $196,000 to cover the potential misuse of taxpayer funds.

However, a Senate estimates hearing was told no money had been repaid to the commonwealth.

"We've actually not accepted a payment yet from anybody in respect of that amount," Finance Department secretary Jane Halton said.

"As of this moment we have not been able to identify exactly how much money is involved in respect of any bills paid by the commonwealth."

She said inquiries were still under way, alongside a Victorian police criminal investigation.

"We've made a series of inquiries to the people who have either approached us or who may have knowledge and those inquiries are ongoing," Ms Halton said.

"We have had no satisfactory answer to those questions."

The department, which oversees entitlements, is liaising with the Liberal party and its accountants and lawyers.

In a statement late on Wednesday, a Victorian Liberal Party spokesman said the party posted a cheque for $20,590.68 to the Commonwealth Department of Finance on August 25 this year to meet the alleged over-charging.

The department has since sought details on how that sum was collated, and the party is trying to get this information from the mailing house.

The Victorian Department of Parliamentary Services has accepted a reimbursement cheque from the party but is holding it until an investigation is complete.

"The Division is currently taking legal advice about whether this reimbursement should actually be made by a third party, but in the meantime we felt a moral obligation to settle the amounts in question and will deal with those third parties at a later time," the spokesman said.