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Sir Ed Davey is refusing to hand back his knighthood, despite growing anger over the Post Office scandal.
Earlier today, former Post Office boss Paula Vennells announced she will hand back her CBE with immediate effect.
But asked by GB News whether Davey would follow suit and hand back his knighthood, a Lib Dem spokesperson said: "No he will not.
"As Ed has said many times, he wishes he’d known then what we all know now.
"It's right that Vennells gave back her CBE, she was at the centre of a conspiracy of lies against the victims, the public and ministers of all parties.
"As Alan Bates said yesterday, Ed was one of many ministers who was misled and lied to by the Post Office."
Davey served as postal affairs minister between 2010 and 2012 in the coalition government.
He was knighted in the 2016 New Year's Honours List for "political and public service".
He is being accused of having turned down a meeting with campaigner and former sub-postmaster Alan Bates while he fought for justice for postal workers.
But the Lib Dem leader has attempted to distance himself from the scandal, claiming he was "deeply misled" about the situation during his time as post office minister.
More than 700 sub-postmasters were handed criminal convictions between 1999 and 2015 after faulty software wrongly suggested the employees were stealing money.
It has since emerged that Davey, along with several other ministers, faced repeated warnings about the accounting problems and issues with the software.
A spokesperson for the Lib Dem politician said he "bitterly regrets” that the Post Office was not honest with him.
Ex-postmistress Sally Stringer called for a "concerted effort to get the responsible individuals", claiming that the root of the scandal “goes back to ministerial decisions” - some of which she described as being “wicked”.
Giving evidence to the ongoing public inquiry, Stringer said: "There has to be a concerted effort to get the responsible individuals.
"It needs to be done as a block, otherwise those responsible will walk away nicely. I would like Vince Cable and Edward Davey to be cross-examined about what they knew and did.”
She added: "I think the problems with Post Office Limited goes back to ministerial decisions taken during the coalition government of the Liberal Democrats and the Conservatives formed in 2010.
"The ministerial decisions range from incompetent to wicked."
In a statement today, Vennells said: "I continue to support and focus on co-operating with the inquiry and expect to be giving evidence in the coming months.
"I have so far maintained my silence as I considered it inappropriate to comment publicly while the inquiry remains ongoing and before I have provided my oral evidence.
"I am, however, aware of the calls from sub-postmasters and others to return my CBE. I have listened and I confirm that I return my CBE with immediate effect.
"I am truly sorry for the devastation caused to the sub-postmasters and their families, whose lives were torn apart by being wrongly accused and wrongly prosecuted as a result of the Horizon system.
"I now intend to continue to focus on assisting the inquiry and will not make any further public comment until it has concluded.
ADDITIONAL REPORTING BY MILLIE COOKE