TASMANIAN Liberal Senator Eric Abetz has broken his silence on former Liberal Party director Damien Mantach, denying knowing any details of his debts to the party.
Mr Mantach had to repay almost $50,000 to the Tasmanian Liberals in 2008 before being forced to resign.
Mr Mantach is being investigated for allegedly stealing $1.5 million from the party's Victorian branch between 2010 and 2014.
Senator Abetz was drawn into the scandal this week, after Premier Will Hodgman told Parliament the two were both briefed on Mr Mantach's Tasmanian debts in 2008.
Mr Hodgman has said he knew the amount of the debt and that it was being repaid, but not how it was incurred.
After declining to comment for several days, Senator Abetz last night said he and Mr Hodgman received separate briefings.
Senator Abetz said he had a meeting with the Liberals' then-state president Dale Archer about Mr Mantach on March 5, 2008.
Senator Abetz said he was told only that there would be an investigation into potential inappropriate use of Mr Mantach's credit card.
"No advice was sought or offered. No sum of money was mentioned. This is not surprising, given that an investigation was still to occur," he said.
Senator Abetz said he was away for a state executive meeting two weeks later, where Mr Mantach's resignation was reported.
"My knowledge until recently was that Mr Mantach had resigned and the expense issues had been satisfactorily resolved," he said.
Opposition Leader Bryan Green told State Parliament the Liberal Party's handling of the matter "reeked of a cover-up".
Mr Green called on the Premier to refer the matter to police.
However, Mr Hodgman said the Opposition Leader was trying to turn Parliament into a kangaroo court.
He said the matter was a province of the Liberal Party's organisational wing, not any member of Parliament.