‘Hockey owes me’: Helloworld scandal surrounding Ambassador Joe Hockey deepens
Potentially damaging new details have emerged about Joe Hockey’s dealings with Helloworld chief executive Andrew Burnes, as Labor spies an opportunity to wound the government.
National
Don't miss out on the headlines from National. Followed categories will be added to My News.
Explosive new details have emerged about Australia’s Ambassador to the US Joe Hockey’s links to the travel company Helloworld, including that the company’s chief executive Andrew Burnes said “Hockey owes me” when asked why a meeting with DFAT staff could occur “so quickly”.
Former Helloworld employee Russell Carstensen has also claimed that after he met with embassy staff and Mr Hockey in April 2017 he reported back to his boss that there was an “excellent opportunity to get that business”.
Mr Carstensen also claimed he did not know Mr Hockey was a shareholder of Helloworld at the time and that he was later told “people” in DFAT had been “uncomfortable” with his meeting with the ambassador and embassy staff.
The claims were made by Mr Carstensen — who had been asked personally by Mr Burnes to fly to Washington DC to meet with Mr Hockey and embassy staff — in an email tabled in parliament today.
Mr Burnes has emphatically denied the allegations.
“Joe Hockey and I have been close friends for 20 years and it would be ridiculous to suggest I would say or imply he owes me anything,” he told Fairfax media.
“I did not organise any meetings between Russell Carstensen and Joe Hockey. Mr Carstensen’s own email of April 24, 2017 shows that he organised the meeting with Mr Hockey and I was simply CCed on the email.”
Mr Burnes said the ambassador was unhappy with his travel arrangements and he was keen to set up a meeting.
Mr Burnes is the Liberal Party treasurer and a long-time friend of Mr Hockey.
Mr Hockey is one of the top 20 shareholders in Helloworld.
The fresh claims come as Labor warned this morning Mr Hockey could be dumped from his diplomatic post over the developing Helloworld scandal if the party wins the election.
A Labor source told News Corp this morning Mr Hockey was “on his last legs” in the role after it emerged Mr Hockey had asked embassy staff to meet with a Helloworld subsidiary, Qantas Business Travel, before it lobbied for government work.
Minister denies Singapore trip freebie
Taxpayers foot Hockey’s $70k party bill
Labor calls for action on Hockey tweet
In his explosive email to the chair of the Senate estimates hearing probing Mr Hockey’s links to Helloworld today, Mr Carstensen wrote: “Around the date of the 23rd of April 2017 I was in Europe on personal leave and some business and was planning to fly directly home to Melbourne when I was contacted by Mr Burnes via email/SMS and voice call to tell me he had arranged a meeting with Mr Hockey and I had to fly home via Washington to meet with him.”
“I asked Mr Burnes how could this be done so quickly he verbally advised me, ‘Hockey owes me’.
“I found that ‘owes me’ comment strange in the circumstances but it’s not an unusual term from Mr Burnes when talking about his business relationships.
“I knew Mr Burnes and Mrs Burnes has had a long term friendship with Mr Hockey and his family.”
The email contains the fresh claim that Mr Hockey was contacted directly by Mr Burnes about a meeting.
LIBS DEFENDS ‘GREAT AUSTRALIAN’
In Question Time today, Prime Minister Scott Morrison defended Mr Hockey, pointing to the statement Helloworld provided to the ASX which declared that at no time did Mr Hockey or Mr Burnes discuss a tender for travel services.
Mr Morrison accused Labor of sitting on the issue until they could use it as a political attack.
Defence Minister Christopher Pyne also defended Mr Hockey as “a great Australian” and a “great ambassador”.
“The Labor Party will stoop to any level to smear and slur good Australians have given good public service like Joe Hockey,” he told parliament.
“Joe Hockey is a great Australian. He has been a great ambassador in Washington, he has done a fantastic job.
“There have been some crucial times in the last three years, particularly in the last two years, when Australia’s interest have needed to be represented in Washington.
“Steel tariffs was a very good example, aluminium tariffs … when Joe Hockey’s relationships in the Pentagon or on Capitol Hill, in the White House, made a tangible difference to the outcome for Australia.”
Opposition leader Bill Shorten responded with a scathing attack as he attempted to suspend parliament’s ordinary business to deal with the deepening Helloworld scandal.
“Hockey owes me’ — that tells you everything you need to know about this government,” Mr Shorten said, as he made a bid to suspend standing orders.
‘EXCELLENT OPPORTUNITY TO GET THAT BUSINESS’
Mr Carstensen’s email contains the claim he had been told by Mr Burnes that his “long term friend Mr Hockey was frustrated that his travel arranges (sic) were unprofessional and with limited hours of operations”.
“Mr Burnes told me that he was going to arrange a meeting with Mr Hockey and me at some point in the first half of 2017,” Mr Carstensen wrote.
“As we had the DFAT contract via the Australian Whole of Australian Government Deed I assumed that there could an extension done to cover all Australian Embassies worldwide.
“I found out later that they weren’t covered in any way in the Deed.”
The former Helloworld employee, who was Group General Manager of QBT, said he then emailed Mr Hockey directly via his government email address about a meeting.
Mr Hockey’s assistant then contacted him to arrange a meeting at 10.30am on April 26 2017 in the Australian Embassy in Washington.
“Ambassador Hockey, a Mr McPhillips and a Mr Richards were in attendance,” Mr Carstensen wrote, adding that the meeting went for an hour and canvassed “Mr Hockey’s travel frustrations”.
He returned home and advised Mr Burnes “that the Embassy business would have to go to tender but there was an excellent opportunity to get that business”.
He also emailed Mr Hockey directly to his embassy email address again to give him “the corporate travel options in detail”.
Mr Carstensen also writes he advised people in Whole of Australian Government Travel that he had met Mr Hockey, and the feedback was that they were “uncomfortable” with the meeting.
“I decided then that I would not follow up with Mr Hockey,” he wrote.
“I was advised later in a conversation that ‘people’ in DFAT were uncomfortable that Mr Hockey met me and that he was a shareholder of Helloworld.
“If I remember correctly I did not know at the time of the meeting in Washington that he was a shareholder.”
HOCKEY’S JOB IN DOUBT
Labor is considering removing the former Treasurer from his post if it wins government in May unless he is cleared by an investigation over the Helloworld claims.
Labor frontbencher Penny Wong then grilled DFAT officials about the matter in a Senate estimates hearing today, saying: “I just find it pretty extraordinary that a head of mission can ask somebody to set up a meeting with a company that he’s got shares in and everyone at the table thinks it’s hunky-dory.”
DFAT officials confirmed Mr Hockey had been approached by QBT about a meeting and he had then requested embassy staff to organise one.
He told embassy staff in person about his shares in Helloworld before the April meeting but only formally declared them in May.
DFAT boss Frances Adamson defended Mr Hockey’s actions, saying “on the face of it” he had taken steps to manage the perception of a conflict of interest.
Ms Adamson described Mr Hockey as a “very energetic Ambassador” and said it was “entirely in character” for him to meet people coming through Washington DC at short notice after they requested a meeting.
“Hindsight is a wonderful thing but he took steps to declare his interests,” she said.
The DFAT boss added that a senior administrative officer at the embassy “did the right thing” in advising Canberra of Mr Hockey’s potential conflict of interest.
She acknowledged “public opinion on these things also play a role”.
“He met our requirements as a public servant working for the department,” she said.
“There are clearly bigger issues at play but they are not for me to comment on.
“He has done what he needed to do in terms of taking steps and then subsequently removing himself from any involvement in procurement.
“Procurement took place the following year. He was and remains … at arms length from that.”
HOLIDAY DRAMAS
On Tuesday, Finance Minister Mathias Cormann said he “genuinely thought” he had paid for a family holiday booked through Mr Burnes.
The senator has now paid $2780 for flights to Singapore in January 2018, after it was revealed the company had booked the flights on its “staff and family travel account”.
The company on Tuesday apologised, saying it had been an administrative error.
“The flights were never ‘free’ and they were never intended to be free,” Helloworld chief financial officer Michael Burnett said in a letter to Senator Cormann.
Attorney-General Christian Porter downplayed the issue this morning, telling ABC: “I think this is an issue that has been trumped and overblown by a Labor Party who has destroyed our border security in the short space of two weeks.”
Prime Minister Scott Morrison also defended Mr Hockey yesterday as Labor sought an investigation.
Mr Morrison told parliament Mr Hockey had no role in the tender process and had declared his business interests in accordance with the Department of Foreign Affairs and Trade’s guidelines.
He said the April 2017 meeting which was the subject of the media report was not in relation to the tender process.
Helloworld said in a statement to the ASX one of its subsidiaries QBT had requested a meeting in 2017 with DFAT personnel in the US to discuss the provision of travel management services and the meeting took place.
“QBT understands DFAT personnel met a number of travel services providers as part of its considerations in relation to the provision of travel services in the United States,” the company said.
“In August 2018, DFAT started a formal tender process, which QBT has responded to. No announcement has been made in relation to this tender.”
The company confirmed at no time had Mr Hockey or Mr Burnes discussed the DFAT tender and “neither Mr Hockey nor Mr Burnes have had any involvement in the tender process”.
“At all times Helloworld and Mr Burnes have acted properly in the tender process.”
What to watch on TV and streaming this week
Triple Logie-winner Kitty Flanagan is back with her global hit workplace comedy and a serious medical problem is tackled head-on in a quality new footy drama.
Iconic Australian TV reporter George Negus dies at 82
Famous for getting under the skin of Margaret Thatcher, George Negus, who was the blueprint for Australian foreign correspondents, has passed away.