Statements by a senior bureaucrat concerning money allegedly defrauded by a former Liberal Party director were "profoundly ignorant and misleading", the party's Victorian president says.
Former state party director Damien Mantach allegedly told MPs to use a mailing business that then followed his advice to overcharge the MPs.
Michael Kroger, the Victorian party's president, has written to members advising that the party has sent cheques totalling $196,000 to cover the potential misuse of taxpayer funds.
However, Finance Department Secretary Jane Halton told a Senate estimates hearing on Wednesday that no money had been repaid to the Commonwealth.
"We've actually not accepted a payment yet from anybody in respect of that amount," Ms 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."
Mr Kroger responded on Thursday by attacking Ms Halton's statements.
"We contacted Ms Halton within an hour of being made aware of the amount we believed the Commonwealth had been overcharged," Mr Kroger said.
"Within two hours, we had posted her a cheque.
"We have been assisting the department with their queries as to how the amount was made up ever since, but for Ms Halton to imply that we have not attempted to repay this money is misleading and completely untrue."
The department, which oversees entitlements, is liaising with the Liberal Party, its accountants and its lawyers.
Ms Halton said inquiries are still under way, alongside a Victorian police criminal investigation.
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