The fallout from Victorian politics' so-called 'lobster with a mobster' scandal is set to continue after already claiming its first Liberal Party scalp and attracting a federal investigation.
Canberra has intervened in the latest drama to rock Spring Street, with Opposition Leader Matthew Guy insisting his April dinner meeting at the lavish Lobster Cave with alleged Melbourne mafia boss Tony Madafferi was not linked to political donations.
"Those reports will be carefully examined by federal authorities," Prime Minister Malcolm Turnbull told parliament on Wednesday.
Mr Guy said he met with long-time Liberal supporter Frank Lamattina and some of his cousins to discuss fruit and vegetable markets.
He said he did not know Mr Madafferi would be at the dinner until he arrived, political donations were never discussed and none have since been received.
But in leaked phone call recordings Liberal Party figure Barrie MacMillan suggested the meeting was designed to procure political donations and Mr Guy knew Mr Madafferi would be present.
Mr MacMillan has since quit his role as electorate conference secretary for the federal seat of Dunkley.
Mr Guy is expected to face more questioning from political opponents and journalists when parliament continues on Thursday.