POLICE have launched a criminal investigation into Liberal MP Geoff Shaw after he was found to have rorted his taxpayer entitlements.
Victoria Police has launched a full-scale probe into the Frankston MP to investigate claims of misconduct of public office.
The Herald Sun believes several staff involved in Mr Shaw's private businesses have already been interviewed by police, detailing how he used his taxpayer-funded car for his private hardware business.
Crime squad investigators launched the inquiry in the wake of a Herald Sun investigation, which sparked a parliamentary inquiry and a damning Ombudsman's report.
''Victoria Police can confirm that the Crime Department is investigating allegations of misconduct in public office by a serving member of the Victorian Parliament,'' a police spokeswoman said.
''As the investigation is ongoing, it would be inappropriate to comment further.''
If charged and found guilty, Mr Shaw's career could be in jeopardy and the Baillieu Government's slender grip on power put to the test.
Mr Baillieu holds power by one seat.
If Mr Shaw is forced to quit and the Government loses the subsequent by-election, a general election would be needed to break the deadlock.
The police probe follows an Ombudsman's report into the use of Mr Shaw's taxpayer-funded car in October, which found he used the vehicle for commercial purposes, clocking 8000km for his Frankston hardware business.
Ombudsman George Brouwer found Mr Shaw used the car for his own business, approved his staff to do the same and paid for petrol for his private vehicle with a parliamentary fuel card.
It is the first time police have confirmed they are formally investigating Mr Shaw, following a complaint received by Chief Commissioner Ken Lay about the scandal in October.
Mr Shaw refused to comment and declined an opportunity to offer a statement through the Office of the Premier.
Read more on the Herald Sun.