Vic Liberals war claims third scalp

Vicious infighting among Victorian Liberals has claimed a third senior scalp with more sackings expected as the party conducts an internal inquiry into the turmoil tearing it apart.

State campaign manager Susan Chandler was forced to quit on Monday after the release of an email she sent to staffer John Osborn describing one of the party's own candidates, Adam Held, as a "greedy f***ing Jew".

Mr Osborn released the email after news broke that he and colleague Simon Morgan had been sacked for contributing to an internet site undermining leader Ted Baillieu and other parliamentarians.

Ms Chandler was among the senior Liberals investigating their anti-Baillieu internet blog, titled hewhostandsfornothing.

Liberals state president David Kemp said he had never before seen this "distressing" level of turmoil in the party, including his time as a federal cabinet minister.

"I regard behaviour of this kind as completely contrary to the ethos and ethics of the Liberal Party that I belong to," Dr Kemp said.

He said he suspected "a few" other party members of being contributors to the anti-Baillieu blog.

"I've called for a full report on the activities of these people and I expect to receive this report shortly," he said.

Dr Kemp said none of those suspected of being involved were Liberal MPs, but would not say whether they were MPs' staff.

He denied the problems were factional, but said they were personal.

"What this demonstrates is that there are people who are prepared to pursue personal vendettas at the expense of the party," Dr Kemp said.

Mr Baillieu said there was a small, but influential group within the party with a culture of "recklessness" and "disgraceful behaviour".

"This is just the tip of the iceberg, I'm afraid to say," Mr Baillieu told Fairfax Radio Network.

"There is a cell of people who have been doing the bidding of others in the party."

Mr Baillieu is a factional ally of former Victorian premier Jeff Kennett, traditionally in opposition to the Costello/Kroger camp.

Dr Kemp said the party's internal review will look only at emails relating to the blog activity and none from Mr Baillieu's own office.

Incoming state director Tony Nutt, once chief of staff to former prime minister John Howard, begins his job in Victoria next week and will investigate the blog activity and review the procedures of the secretariat, he said.

Dr Kemp said he accepted retiring state director Julian Sheezel's assurance that he knew nothing of the blog until last month.

Ms Chandler said she deeply regretted her comments and any offence caused to Mr Held and the Jewish community.

"I have many Jewish friends and am in no way anti-Semitic," she said.

"My comments were completely out of character and were made on the spur of the moment in an email during a difficult period of the election campaign."

Mr Held accepted the apology.

"I was surprised and deeply disappointed at the comments made about me by a staff member of the party," he said.

"I have accepted her apology and now consider the matter closed."

Other internal Liberal emails leaked to The Age newspaper show Mr Morgan referring to former Howard government minister Fran Bailey as a "stupid fat bitch" and to federal candidate for Coria Angelo Kakouros as a "c**t" in his correspondence with Mr Osborn.

Victorian Nationals leader Peter Ryan said the Liberal infighting was "disappointing" but he remained committed to the coalition.