Victorian Liberals are questioning how much the party’s federal director, Brian Loughnane, knew about $50,000 worth of wrongly claimed expenses paid to an official who is now alleged to have stolen $1.5m from the party.
The Victorian Liberal party has called in the police after a forensic audit allegedly revealed long-term party official Damian Mantach had taken $1.5m in party funds during his four years as state director from 2011 to 2014.
Now the Tasmanian Liberal party has revealed that during Mantach’s time as director in that state, from 2005 to 2008, he had repaid $48,000 after a dispute over the use of his corporate credit card for private spending, something not previously revealed to members. Mantach joined the Victorian division as deputy director in 2008.
According to a speech on the issue during Thursday night’s Senate adjournment debate – under the cover of parliamentary privilege – the Labor senator Glenn Sterle questioned whether Loughnane – and possibly also the Liberals’ Senate leader, Eric Abetz – knew about the dispute involving Mantach during his time with the Tasmanian party, before he was appointed in Victoria.
“Reports suggest that senior figures with knowledge of alleged questionable conduct by Mr Mantach in Tasmania include Liberal party federal director Mr Brian Loughnane,” Sterle said.
“It is understood Mr Loughnane was part of the selection panel that appointed Mr Mantach to the position of director of the Liberal party of Victoria. The other panellists were Mr Tony Nutt, the former chief of staff to Prime Minister Howard, current NSW party director ... as well as then premier Ted Baillieu and his then chief of staff Michael Kapel.”
Referring to Mantach’s involvement in another controversy in which the Exclusive Brethren religious group tried to secretly influence the 2006 Tasmanian state election with ads attacking the Greens, Sterle suggested in parliament that Abetz may be able to “shed some light” on the matter since he was a key figure in the Tasmanian party at that time.
He also referred to secret taped conversations between Mantach and Nutt in which they allegedly offered assistance to a staffer who had resigned over a plot to undermine the former Victorian police chief commissioner Simon Overland.
At that time the prime minister, Tony Abbott, said of Mantach: “I know Damien well. He is a person of integrity. Let’s see where this investigation goes but he has my confidence.”
In the Senate speech, Sterle asked: “There are questions for Mr Loughnane to answer: first, his role in Mr Mantach’s appointment; second, his knowledge of his conduct in Tasmania prior to his appointment in Victoria; and third, his knowledge of Mr Mantach’s conduct during his Victorian appointment, including where the money went. Did any of it serve the Liberal party’s interests, state or federal?
“There are also questions for the prime minister to answer: first, his knowledge of Mr Mantach’s conduct in Tasmania and Victoria; second, the prime minister needs to explain the reason he considers him ‘a person of integrity’; third, the connection between his office and Mr Mantach; and fourth, the relationship between Mr Mantach and Mr Loughnane.”
