Julie Bishop and Malcolm Turnbull rush to defend scandal-hit Australia Post boss as former PM says there's 'nothing corrupt or dishonest' in giving four executives Cartier watches worth $20,000
Former prime minister Malcolm Turnbull and former foreign minister Julie Bishop have rushed to the defence of Australia Post's embattled chief executive.
Christine Holgate was told to stand aside from her CEO role in October, pending an investigation, after it was revealed she spent $20,000 on four luxury Cartier watches for already highly paid executives.
'There is nothing corrupt there. There is nothing dishonest there,' Mr Turnbull said.
Malcolm Turnbull (pictured with wife Lucy) has defended embattled Australia Post CEO Christine Holgate
Former foreign minister Julie Bishop said she had met Ms Holgate and was impressed by her
Mr Turnbull, who was a high profile lawyer before turning to politics, said that while the expensive gifts may not look good, Ms Holgate had not done anything wrong and had been treated harshly.
'The fact that she chose to deliver that bonus with a flashy watch, a very expensive watch, that is a question of taste - you might say you didn't like the optics of it,' he said, according to The Australian Financial Review.
Ms Bishop, who was Australia's foreign minister from 2013 to 2018, said she knew Ms Holgate and she was respected among corporate and political circles in Australia and abroad.
She explained she met Ms Holgate while she was boss of vitamin company Blackmores and was quickly impressed by her.
'I gained enormous regard for Christine's professionalism and integrity,' Ms Bishop said.
Later in 2015, she appointed Ms Holgate as head of the Australia-ASEAN council - an organisation to promote the business, cultural, and education interests of Australia in south-east Asia.
Australia Post CEO Christine Holgate was ordered to stand down after four luxury watches worth tens of thousands of dollars were given to executives
Ms Holgate - who earns $2.6million a year - gave four Cartier watches to well-paid bosses as a reward for clinching a deal to do banking at post offices in 2018 (stock image)
Business leaders have also rushed to defend Ms Holgate, with Australian Super CEO Ian Silk saying the scandal was a 'pile on' while more serious matters get a 'shrug of the shoulders'.
On Friday, PM Scott Morrison doubled down on his previous comments that Ms Holgate should resign if she's not prepared to stand aside.
'It's a government-business enterprise, the government owns Australia Post on behalf of taxpayers, which is why we've set out our very clear standards on this,' he told Sydney radio 2GB.
'It's important that there are standards there and not just for Australia Post, but right across all the government business enterprises and agencies that are there. Government departments, the same thing. I think that's what Australians expect.'
Prime Minister Scott Morrison said the gifts were as unacceptable and ordered her to step down
Ms Holgate told senate estimates hearing the gifts had been signed off by 'the chair,' myself, and on behalf of the board'
Mr Morrison said while he stands by the statement, the decision on whether Ms Holgate should stay in the role would be one for the board of Australia Post.
Ms Holgate has said there are no legal grounds for her standing aside and she has not been given any information about an investigation into watches bought for senior staff.
She has accused the prime minister of humiliating her after he labelled the gifts disgraceful and appalling in a fiery speech to parliament.
The allegations - raised in a letter from Ms Holgate's lawyer this week - are a clear sign of a brewing legal battle.
Australia Post is being investigated by two government departments over its culture of lavish expenses and gifts - including nearly $300,000 being charged to company credit cards issued to Ms Holgate and her office.
Australia Post chair Lucio Di Bartolomeo issued a statement last Friday night to clarify the exact cost of the Cartier watches 'as a matter of urgency'.
'I have become aware of further details of the purchase and wish, as a matter of urgency, to clarify that the purchase was of four items costing $7,000, $4,750, $4,400 and $3,800 totalling $19,950 (including GST),' he said.
However, the watch fiasco is not the only line of investigation after it was revealed Australia Post forked out $34,000 for her to stay at the five-star Grand Hyatt Hotel.
Ms Holgate visited the city between October 2017 and July 2018 to go to the company's head office in Melbourne.
Australia Post forked out $34,000 for Ms Holgate to stay at the five-star Grand Hyatt Hotel for nine months
Ms Holgate, who has a harbourside property in Sydney's Mosman and a $5million holiday home in Pearl Beach on the NSW's Central Coast, reportedly had a 'best room rate' at the hotel, The Australian reported.
It is understood she was often upgraded to an executive suite when she stayed at the Grand Hyatt because she was a regular guest.
Prices at the Grand Hyatt start at $289 a night for a standard room but can cost up to $2,149 a night in the diplomatic suite.
Australia Post had been granted permission by the Remuneration Tribunal to spend a maximum of $34,500 for Ms Holgate's accommodation for up to six months.