The Liberal Party federal executive has closed ranks over damaging leaked emails penned by party treasurer Phil Higginson that alleged transparency issues and a perceived conflict of interest involving Prime Minister Tony Abbott's chief of staff, Peta Credlin, and her husband, federal director Brian Loughnane.
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In a pair of blistering emails sent to the executive last month, Mr Higginson raised concerns about a "significant delay" in information he had sought from the party secretariat about expenditure.
He also suggested the "most serious current dilemma" facing the party was the conflict between the political and organisational wings of the party because of the marriage between Ms Credlin and Mr Loughnane.
Pressure has been mounting internally for a sweeping review of the party's structure and changes to governance arrangements.
But following a meeting of the federal executive on Friday, the party's executive wing endorsed a move by federal president Richard Alston to establish an "Audit and Governance" committee.
That committee will have responsibility for reviewing the party's financial statements in future years for audit by the party's auditor.
In a short statement issued after the meeting on Friday, Mr Alston said an unqualified report on the party's finances by the party auditor had been accepted, and that party fundraising was "well above budget".
He lashed "recent media reports" that contained "statements on the party's fundraising and budget management that have no foundation whatsoever".
"Today's changes further modernise the party's internal procedures to allow the party to fully concentrate on the important task of supporting the Abbott government and preparing the campaign to ensure the re-election of the government," Mr Alston said.
The measures announced on Friday are unlikely to satisfy the internal critics of Ms Credlin and Mr Loughnane, who argue current arrangements are untenable.
Ms Credlin has faced an avalanche of criticism for her performance in the chief of staff's job, with the chief complaint being the tight control she maintains on the ministry and the backbench.
