Tasmanian police have been asked to investigate the misappropriation of almost $48,000 of state Liberal funds by former party boss Damien Mantach.
On the same day Tasmania's Labor opposition asked detectives to intervene in the matter, Liberal state director Sam McQuestin revealed the party has updated its financial data with the Australian Electoral Commission to reflect Mr Mantach's repayment of money before he left the state in 2008.
"Due to an administrative oversight the repayment of Mr Mantach's liability was not disclosed as receipts as it should have been," Mr McQuestin said in a statement posted on the branch's Facebook site on Friday.
On Thursday, more than seven years after the occurrence, an amendment was sent to the commission declaring the repayments made by Mr Mantach, as required by law.
"The Tasmanian (Liberal) division sincerely apologies (sic) for the oversight in relation to its return from 2007-2008 which we sought to correct as soon as we became aware," Mr McQuestin said.
Before leaving Tasmania to head the Victorian Liberal branch, Mr Mantach repaid the party $47,981.78 - which he had spent on his company credit card - in four instalments.
Mr McQuestin said it is not unusual for political parties to make amendments to annual financial receipts and the commission had agreed with the course of action in this instance.
Labor leader Bryan Green said he referred the matter to police after the Liberal government refused to answer questions in the parliament.
"Labor has concerns that illegal activity has occurred, and that's why we have taken the very serious step of referring the matter to police for investigation," he said.
"It is clear that a police investigation is now the only way to get to the bottom of this matter."
Mr Green said the Liberal Party has tried to cover up the circumstances surrounding Mr Mantach's departure from Tasmania.
But Premier Will Hodgman insists it is not his place to comment.
"They are matters for the administrative arm (of the party)," he told reporters on Friday.
"It is appropriate for them to not only administer the affairs of the party but to be answerable for them."
Mr McQuestin said the Tasmanian Liberals will co-operate with police should an investigation go ahead.
Police Deputy Commissioner Scott Tilyard confirmed receiving the request from Mr Green that the matter be investigated.
"The matters raised will be assessed and the author will be advised of the outcome in due course," he said.
Victoria Police is investigating Mr Mantach over the alleged theft of $1.5 million from the state Liberal Party.
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