Former Tasmanian Liberal boss Damien Mantach repaid almost $50,000 in "personal expenses" to the party in 2008 and the branch closed the book on the matter.
More than seven years later Mr Mantach is accused of subsequently stealing $1.5 million from the party's Victorian division and has been referred to police.
The latest move has forced the Tasmanian party to admit it failed to take action against the alleged serial rorter.
In a message to Tasmanian Liberal members on Thursday, posted on the party's Facebook account, state president Geoff Page assured followers the events in Victoria will have no impact across Bass Strait.
"In the interests of ensuring that members have factual information I wish to pass on the following advise (sic) which I have received today," he wrote.
"Mr Mantach had in 2008 a liability for personal expenses to the Tasmanian division totalling $47,981.78, which was fully repaid by Mr Mantach to the division upon his departure in March of that year.
"As the debt was settled in full the division considered the matter closed."
Mr Mantach was Tasmanian party director from 2005 to 2008 before he left the state to take up a position with the party in Victoria.
Since Mr Mantach's departure, Mr Page said the Tasmanian division has introduced robust financial management practices including annual audits and periodic reviews.
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