Bid to recover $1.5m fails, Libs eye thief’s super

A former Victorian Liberal Party director may have to dip into his super to repay some of the $1.5 million he stole.

Former Liberal Party Victorian secretary Damien Mantach.

Former Victorian Liberal Party state director Damien Mantach looks set to escape repaying the majority of the $1.5 million he stole from the party but could be forced to pay the organisation some of his superannuation.

More than four years after being exposed stealing from the party, the full extent of the scandal is still unfolding, with the party ­seriously out of pocket because of the theft.

At one stage, Liberal Party staff were preparing to take over a cafe owned by Mr Mantach’s wife but which had received more than $600,000 of the organisation’s money. A party staff member was ­assigned to draw up a new menu with the aim of keeping the asset and running the cafe rather than selling it for no serious financial gain.

Gusto cafe, on Victoria’s Bellarine Peninsula, was eventually sold regardless, given the Liberal Party’s limited skill at running a cafe.

Mr Mantach, who spent more than 2½ years in jail for the theft, is quietly trying to rebuild his life, working as a labourer and living with close family in country Victoria.

“He is doing his best to get everything going again,’’ a friend told The Weekend Australian. “He knows he did the wrong thing and it’s a case of trying to make amends as best he can.’’

It is believed there is a commitment for some of Mr Mantach’s superannuation to potentially be returned to the Liberal Party.

But the organisation is not pursuing the outstanding $1.1m that was not recovered from the theft.

“He can’t pay what he doesn’t have,’’ a Liberal familiar with the situation has said.

Mr Mantach repaid $429,713 in August 2015 in shares and $37,000 for a Toyota LandCruiser. But it is understood that most — if not all — of this nearly $470,000 was eaten up in legal fees and for consultants who conducted a review of the party’s finances.

The party has baulked at suggestions of selling the family house where Mr Mantach’s wife and children are believed to still live. However, it will seek to ­retrieve money if the house is sold, sources said.

Mr Mantach’s father, Brian, wrote to the party last year, asking that it waive compensation owed to it because his son was broke.

The compensation order was initially $882,108 but interest has seen that figure rise, adding further pressure as Mr Mantach ­recovers from the trauma of prison.

Mr Mantach, 45, pleaded guilty to 15 charges of obtaining ­financial advantage by deception between 2010 and 2014. He ­received a five-year maximum jail term and was released on parole about a year ago, having entered jail voluntarily in 2015 ahead of his sentence. He was a model, co-­operative prisoner.

Mr Mantach had transferred the $1.5m into the account called Campaign Mail Logistics and, through 53 invoices, he billed MPs’ offices for printing that had never been done or for inflated costs.

The cascading impact on the party was huge, sparking the long-running showdown between then party president Michael Kroger and the wealthy Cormack Foundation.

Cormack demanded a series of accountability measures be imposed on the party before receiving further donations. But Mr Kroger argued that the money in Cormack’s possession, today worth more than $70m, belonged to the Liberal Party and should ­remain in Liberal hands.

Mr Kroger was credited with detecting the Mantach fraud.

Cormack and the Liberal Party are still debating how much money the foundation should be paying the organisation.

Mr Mantach told police that he had been under financial pressure, which was the motivation for stealing the money.

The Liberal Party is looking for a new state director after incumbent Simon Frost left the post ­yesterday.

Mr Frost was credited with running a strong campaign for the party at the May federal ­election in Victoria but has ­returned to work for Treasurer Josh Frydenberg.