Vic Lib embezzlement investigation ongoing

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.

Damien Mantach, who stood down in March after the party's 2014 election loss, was publicly accused on Thursday of stealing from the Liberal's election war chest over four years from 2010.

Mr Mantach did not answer calls or emails from AAP on Thursday and has not yet returned any on Friday.

Internal Liberal party investigations have been handed over to Victoria Police fraud and extortion squad detectives, who would not say on Friday whether Mr Mantach or anyone else had been interviewed over the allegations.

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.

The current state branch president Michael Kroger said Mr Mantach had made admissions and it appeared he was the only one involved.

The party says the missing money did not impact the November election result.

Mr Mantach has also attracted the ire of his wife Jodie, who says he told her of the allegations on Tuesday night after meeting with a lawyer.

"I had absolutely no involvement in it and no knowledge of it and I believed him when he said everything was above board," she told the Herald Sun.

"I don't want anything to do with him. My plan is to protect my girls."

The couple have two young daughters and Mrs Mantach reportedly fears they could lose their home.