Australia Post boss Christine Holgate walks away with NOTHING after quitting over the Cartier watch scandal - despite being entitled to a $700,000 payday
Australia Post boss Christine Holgate has walked away from her $1.5million-a-year position over a Cartier watch scandal, forgoing her right to a six-month $700,000 payout.
The embattled chief executive has been under scrutiny since it was revealed Cartier watches worth almost $20,000 were gifted to four senior staff in 2018 after they secured a deal with the banks.
Her decision to forfeit the hefty payout comes after her predecessor, former Australia Post CEO Ahmed Fahour, walked away with $8.7 million worth of bonus payments and superannuation on top of his $2 million salary.
Australia Post confirmed on Monday that Ms Holgate had chosen not to claim a cent from the company she has helmed since 2017.
Australia Post boss Christine Holgate has walked away from her $1.5million-a-year position over a Cartier watch scandal, forgoing her right to a six-month $700,000 payout
Prime Minister Scott Morrison said the gifts were as unacceptable and ordered Ms Holgate to step down
'I have offered today the Chairman and Board of Australia, with great sadness, my resignation as chief executive with immediate effect,' she said in a statement.
'We have prepared significantly for this peak, but still face significant challenges — keeping our people safe, managing the biggest e-commerce Christmas ever and planning in the face of unpredictable seasonal weather.'
It comes after Scott Morrison labelled the gifts 'disgraceful and appalling' in a fiery speech to parliament, declaring if the chief executive did not wish to stand aside 'she can go'.
Ms Holgate later accused the prime minister of humiliating her and said there were no legal grounds for her standing aside.
She has promised to cooperate with a four-week investigation into Australia Post being conducted by the federal finance and communications departments.
Ms Holgate said she had decided to stand down as it was 'critically important' that Australia Post was focused on supporting their customers and communities as Christmas approaches.
'The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my personal wellbeing.
'Consequently, I have made the difficult decision to resign, hoping it will allow the organisation to fully focus on serving our customers.'
She is standing by the purchase of luxury watches, saying the executives involved sealed a banking deal worth $220 million.
'However, I deeply regret that a decision made two years ago, which was supported by the chair, to recognise the outstanding work of four employees, has caused so much debate and distraction,' Ms Holgate said.
'I appreciate the optics of the gifts involved did not pass the ''pub test'' for many.'
Ms Holgate admitted spending $12,000 on four Cartier watches for four executives, but it was later revealed the true figure was closer to $20,000
Ms Holgate later accused the prime minister of humiliating her and said there were no legal grounds for her standing aside
Ms Holgate said she had no animosity towards the government and enjoyed working with Mr Morrison and senior ministers during her time at the organisation.
Opposition Leader Anthony Albanese said last week Ms Holgate's position at Australia Post was untenable.
Her resignation comes after her lawyers hinted at a looming legal battle over the Prime Minister's decision to have her stood down.
A statement from Bryan Belling, partner at employment law firm Kingston Reid last week said: 'Legally, in my opinion there are no grounds for Ms Holgate to be stood down, and ''optics'' not a legally-valid defence.'
'Nor has she been informed as to why she should be stood down.'
Mr Morrison lashed out at Ms Holgate in parliament last week, calling the gifts disgraceful and appalling.
'She's been instructed to stand aside and if she doesn't do that, she can go,' Mr Morrison said.
Ms Holgate's future was put in doubt after it was revealed that she spent $12,000 of the public company's money on Cartier watches to be given to staff members as a bonus
Australia Post boss Christine Holgate's full statement:
'I have offered today the Chairman and Board of Australia, with great sadness, my resignation as Chief executive with immediate effect.
'As Christmas approaches, it is critically important that Australia Post is absolutely focussed on supporting our customers and communities.
'We have prepared significantly for this peak, but still face significant challenges - keeping our people safe, managing the biggest ecommerce Christmas ever and planning in the face of unpredictable seasonal weather.
'I firmly believe that the 'ship' needs a strong captain at the helm to help navigate through this time.
'The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my personal well-being.
'Consequently, I have made the difficult decision to resign, hoping it will allow the organisation to fully focus on serving our customers.'
Friends have since revealed the businesswoman has been 'crying for days' over the scandal.
The investigation was sparked after it was revealed senior staff, Gary Starr, Deanne Keetelaar, Anna Bennett and Greg Sutherland, were given the luxury watches after the organisation secured the historic $66million Bank at Post deal.
The deal has allowed Australians to access banking services through Australia Post.
Officials are investigating the possibility of irregular use of taxpayer money by Ms Holgate, board members and other Australia Post executives.
The watch fiasco is not the only line of questioning Ms Holgate is facing 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.
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.
Ms Holgate, who has a home in one of Sydney's most affluent suburbs, stayed at the five-star Grand Hyatt Hotel between October 2017 and July 2018 when she visited 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
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.
Ms Holgate replaced Ahmed Fahour as Australia Post chief executive in October 2017. His final take-home pay in 2017 was a staggering $10.8million.
Upon her appointment, Ms Holgate had said she planned to buy a home in East Melbourne.
She later told the Financial Review's Boss magazine in October 2018 she chose to stay at the hotel as it was 'like home'.
'I'm not allowed to tell you the rate but the Grand Hyatt have given me a great rate and actually I could not rent a one-bedroom apartment around here (Melbourne CBD) for that,' she told the publication.
'At first I thought I would hate it and everyone said ''Don't do it!''. But it's fantastic. I got home at 9.30 last night and I wanted something to eat, and they made me a cheese toastie,' she said.
'I want my laundry done, I call them in the morning and say could you do my laundry today?'
Ms Holgate worked for Blackmores as its chief executive before moving on to Australia Post in 2017.
She replaced Ahmed Fahour as Australia Post chief executive in October 2017. His final take-home pay in 2017 was a staggering $10.8million.
Under Ms Holgate's tenure, a stream of senior management and executive team quit their respective posts.
Among these are chief financial officer Janelle Hopkins, chief operating officer Bob Black, services executive Philip Dalidakis, international services executive Annette Carey and chief digital officer Andrew Walduck.
Australia Post boss was grilled over Cartier watches:
Labor Senator Kimberley Kitching grills Ms Holgate in cross-examination after revealing top executives were 'awarded' watches.
Senator Kitching: And what was that award?
Ms Holgate: They got watches.
Senator Kitching: And what were the watches?
Ms Holgate: They were a Cartier watch of about a value of $3,000 each.
Senator Kitching: Four people got Cartier. Do you remember the brand, the type? Was it a Cartier Tank? What was it?
Ms Holgate: I don't recall. I didn't actually purchase them. They were organised through my office on behalf of the Chair and I.
Senator Kitching: OK so just to be clear, the four people who received Cartier watches were Mr Starr. You received one, Ms Holgate?
Ms Holgate: No, I did not.
Senator Kitching: Do you, Ms Holgate, consider it appropriate to use taxpayers' money to buy Cartier watches for already highly-remunerated Australia Post executives?
Ms Holgate: I have not used taxpayers' money. We are a commercial organisation. We do not receive government funding. We are a commercial organisation.
Senator Kitching: It is a government organisation.
Ms Holgate: It was a recommendation from our Chair that these people get rewarded.