Liberal Party bosses knew about Mantach

The Liberal Party's federal director knew about Damien Mantach's credit card abuse in Tasmania before he was given the top job in Victoria, a former party executive says.

Former Tasmanian Liberal Party president Dale Archer says he personally spoke to Brian Loughnane in 2008 about Mr Mantach's conduct as the party's state director.

"Brian Loughnane was informed by me of the full extent of the circumstances surrounding Mr Mantach's departure," Mr Archer told the Herald Sun.

Police are investigating claims the former state director of the Victorian Liberals embezzled $1.5 million from the party.

Mr Mantach was publicly accused on Thursday of stealing from the Liberals' election war chest over four years from 2010.

He has reportedly been asked in the past to repay $47,000 to the Tasmanian division linked to the alleged inappropriate use of corporate credit cards during his tenure as state director.

Mr Archer also says the Victorian Liberal Party never asked him for a reference for Mr Mantach.

"I had no idea he'd gone to work with the Victorian division until I read in the paper that he'd been appointed deputy campaign director," he said.

The Liberal Party's national director, Mr Loughnane, confirmed Mr Mantach was asked to repay money but would not comment on the nature of the state director's exit.

"I was informed there had been a credit card overspend and that he'd repaid the money," he told the Herald Sun.

The Liberal Party's top echelon have come under fire for allowing Mr Mantach to assume a senior role in Victoria despite knowing about his conduct in Tasmania.

Prime Minister Tony Abbott publicly backed him during a scandal that claimed the leadership of Victorian premier Ted Baillieu.