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TASMANIA Police say they will not be investigating credit card debts racked up by former Tasmanian Liberals director Damien Mantach.
Mr Mantach was forced to repay almost $50,000 in personal expenses charged to a Liberal Party credit card before before forced to resign in 2008.
He repaid the money but it did not appear on the party's annual return.
Opposition Leader Bryan Green referred the matter to police amid concerns that illegal activity might have been covered up.
However, Deputy Commissioner Scott Tilyard said on Saturday that police would not be pursuing the matter.
"Tasmania Police does not investigate alleged property offences without a complaint from a victim or a person acting on behalf of a victim," Mr Tilyard said.
Rank-and-file Liberal members have unanimously endorsed the party's handling of the matter, making it highly unlikely that police will become involved.
Mr Green maintained the scandal had been shrouded in secrecy, including Friday's closed-door meeting of Liberal members.
However, current Tasmanian Liberals director Sam McQuestin labelled Mr Green's referral to police a failed political stunt.
Premier Will Hodgman argued that the Opposition Leader had "spent a lot of time on nothing".
"He's a bush lawyer - and a bad one - and he should get better legal advice," Mr Hodgman said.
"As we've consistently said, there was no evidence of criminality, and the police have confirmed that today."
Mr Mantach is under investigation in Victoria for allegedly embezzling $1.5 million in Liberal election funding while working as that state's party director between 2010 and 2014.
Labor has also asked the federal Auditor-General to examine whether printing allowances were misused under Mr Mantach's tenure between 2005 and 2008, as they allegedly were in Victoria.