Victorian Liberal Party leader Matthew Guy said the party was ‘furious’ over the disappearance of $1.5 million in campaign funds.

Speaking to the media following an emergency meeting of the party’s heads, Mr Guy confirmed former state director Damien Mantach was being investigated following the disappearance of campaign funds.

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The alleged embezzlement of funds from the Victorian Liberal Party was used to “fund lifestyles”, according to the group’s state director, Michael Kroger.

Financial irregularities were discovered in an internal investigation conducted by the Party, with documents now turned over to the Victoria Police Fraud and Extortion Squad.

Mr Kroger said on Thursday it was “uniquely” a matter that had taken place at the Victorian branch between 2010 and 2014.

Mr Mantach is currently the only person implicated.

“[The amounts] ranged in the $10,000 and they added up to $1.5 million… we will recover some of the funds,” he said.

Earlier, Mr Kroger told the Herald Sun the Party would refer the matter to the police.

“(It was) nothing particularly outrageous, just people funding their lifestyles,” Mr Kroger said.

“It should have been picked up before and it wasn’t unfortunately.”

According to the Herald Sun, forensic accounting firm PPB Advisory was called into Liberal Party headquarters at 104 Exhibition St and uncovered allegedly fraudulent invoices.

Some of the invoices were allegedly made out to a firm that does not exist.

Mr Guy said the Victorian Liberal Party were “furious” over the missing funds that had been identified after current state president Michael Kroger raised concerns with apparent overspending.

“We want our money back and this is going to go to the police,” Mr Guy said.

“Our MPs, our branch members, our supporters, are no doubt going to be absolutely furious at this. And rightly so. We are furious … we want justice done.”

Former Victorian Liberal Party leader Denis Napthine said he was “bitterly disappointed” by the misappropriation of funds, while Deputy Leader David Hodgett said they wanted “justice done”.

Meanwhile, Prime Minister Tony Abbott washed his hands of the matter, saying it was an issue for the Victorian Division.

“It’s just a matter for the Victorian division”, PM Abbott on missing millions from Vic Liberal party. @smh @theage

— Latika M Bourke (@latikambourke) August 19, 2015

Mr Mantach is yet to comment on the allegations.