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Read more: http://www.theage.com.au/victoria/victorian-liberals-200k-bill-for-taxpayer-cash-20150825-gj7o9i.html#ixzz3jpvtETBT follow us: @theage on Twitter | theageAustralia on Facebook The Victorian Liberal Party will hand over almost $200,000 to the Victorian and Federal Parliaments after an internal audit found taxpayer money was used in an alleged kickback scheme linked to disgraced former state director Damien Mantach. It is alleged Mr Mantach advised a mail house that was used by the Liberal Party, to overcharge state and federal MPs. The printing company was allegedly paying kickbacks to Mr Mantach. On Tuesday evening, Victorian Liberal Party president Michael Kroger wrote to party members informing them of the "reimbursement". He said the party had a "moral obligation to settle the amounts in question". The latest blow to the Liberal Party follows allegations last week that Mr Mantach had embezzled $1.5 million worth of party funds over four years. As the party's funds scandal grows, Mr Kroger said Liberal MPs "have been appalled by what they have learnt having at all times acted in good faith". "No member of parliament was aware of Mr Mantach's direction to the mail house and are disgusted with what has happened." The Liberal Party has written to the Department of Finance in Canberra and the Department of Parliamentary Services in Victoria to advise them $196,037 would be paid back. "The party is currently taking legal advice about whether this reimbursement should actually be made by a third party but in the meantime the party feels a moral obligation to settle the amounts in question," Mr Kroger said. The decision to reimburse the money comes before Victoria Police have completed their investigation into Mr Mantach, and Mr Kroger said the amount due back to parliament could change following the investigation. The Liberal Party have recouped $450,000 selling Mr Mantach's share portfolio, and decided not to sell his family home. The party is facing questions over how Mr Mantach was able to secure the position of Victorian state director in 2011 after he had repaid $47,981 to the Tasmanian branch after leaving in 2008. On Tuesday, Senior Federal Liberal Eric Abetz was drawn into the scandal, with claims he had been briefed on the Tasmanian debt long before Mr Mantach alleged embezzlement in Victoria. In his letter on Tuesday night, Mr Kroger apologised to Victorian state and federal parliament members for "allowing them to be drawn into this matter in circumstances where they had no knowledge or involvement whatsoever. Read more: http://www.theage.com.au/victoria/victorian-liberals-200k-bill-for-taxpayer-cash-20150825-gj7o9i.html#ixzz3jpwuyhad Follow us: @theage on Twitter | theageAustralia on Facebook .