FEDERAL Liberal Party vice-president Santo Santoro and former Queensland Liberal Party president Michael Caltabiano have cast the party into controversy, with police investigating their links to a slush fund.
Mr Santoro, a politician turned lobbyist, is confident he complied with electoral laws.
His own party referred him to police, along with sidelined Queensland transport director-general and former Liberal party executive Michael Caltabiano, over allegations they mishandled donations from Brescia Investments.
Mr Santoro said he only heard about the allegations in the media and is unable to specifically respond.
"However, I am confident that my fundraising activities as a federal vice-president of the Liberal Party, and previously, are completely compliant with all relevant electoral laws," he said in a statement.
The Australian newspaper says the allegations relate to political donations by the private investment company Brescia Investments, which has links to both men.
It's alleged the company financed a long-running slush fund for select candidates and MPs within the Liberal Party and later within the LNP.
The Australian cited documents showing Brescia Investments declared to the Queensland Electoral Commission that Mr Caltabiano received a $20,400 donation in 2009.
LNP officials have reportedly told police they were unaware of the donation.
The Australian also said that in 2006, Brescia extended a private loan to then Howard government minister Santoro as he was in the midst of a share-buying spree that led to his 2007 resignation for failing to disclose the investments.
Mr Santoro, who is now federal Liberal Party vice president, told the newspaper he had declared the loan at the time and had since repaid the money.
"There was nothing political about that loan, it was a commercial transaction which was declared at the time," he said.
Queensland Premier Campbell Newman admitted on Friday he'd known about the LNP's worries for weeks and he had "no concerns whatsoever" over the matter being referred to police.
Mr Newman, who hand picked Mr Caltabiano for his transport position, remained silent on the issue, despite Mr Caltabiano stepping aside from his role last Thursday over separate matters.
The Crime and Misconduct Commission (CMC) is investigating possible official misconduct relating to the appointment of Arts Minister Ros Bates's son, Ben Gommers, as a liaison officer in Mr Caltabiano's department.
Meanwhile, parliament's ethics committee is considering three matters, including whether Mr Caltabiano misled a budget estimates hearing about whether he had a previous professional relationship with Mr Gommers.
Mr Newman said he doesn't know if Mr Caltabiano has offered to resign and he has avoided him over the past few weeks.
"I in no way want to be accused of contaminating any investigation," Mr Newman said.
He also said he doesn't regret choosing Mr Caltabiano for the plum transport job, and congratulated him for sorting out the department.
"But I am concerned about these issues raised," he said.
"If there is a police investigation and a (Crime and Misconduct Commission) investigation and an ethics inquiry, guess what? Someone is going to work out what's gone on here and I think we should wait and see."
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