German alleges Randerson was also a target

In a totally unexpected intervention, he said he was angry at the "unprincipled, underhand smears that our political enemies have unleashed for so long and with such apparent impunity, after all never let the facts get in the way of a good story".

Thanking party members for their support, Mr German said that coalition politics had angered "the old order in Wales... those who for decades have governed their cosy local fiefdoms."

This was his first statement to the party since being forced to stand aside as assembly deputy first minister.

That move was prompted by a police investigation probe into the European Unit of the Welsh Exams Board which Mr German used to head.

Richard Livsey stepped down as leader

Mike German also claimed that the alleged smear campaign was also targeted at fellow Liberal Democrat and Acting Deputy First Minister Jenny Randerson.

"Some of the dirtiest and most despicable attacks have involved her (Jenny Randerson) in the most disgraceful manner," he added.

Earlier in the conference, an attempt to restrict candidates for the Welsh party's leader - which will be installed by the autumn - to Assembly Members only was dashed.

Now AM's and MP's will be able to vie for the job vacated by Richard Livsey.

The party executive had attempted to restrict the leadership to AMs but it was defeated by the Newport Constituency Party who argued that the leader should be drawn from the largest talent pool possible.

The so-called "Newport Amendment" was passed overwhelmingly. The executive says that it's relaxed about being defeated and that this isn't a snub to Mike German. Assembly group leader, Mike German, said that he's undecided about running for the leadership. The next leader will be installed by the autumn.