ABC board split over David Anderson’s decision to indemnify Louise Milligan in defamation case

David Anderson’s unilateral decision to fund Louise Milligan’s legal costs was met with deep frustration at board level.

ABC managing director David Anderson made the decision to indemnify Louise Milligan in defamation action taken against her by federal Liberal MP Andrew Laming. Picture: NCA NewsWire/David Geraghty

ABC managing director David Anderson’s unilateral decision to fund reporter Louise Milligan’s legal costs inthe defamation case brought against her by federal MP Andrew Laming was met with deep frustration at board level.

Sources within the ABC have told The Australian the board was split over Mr Anderson’s decision, although it did recognise he had acted within the boundaries of his directorial powers in moving to indemnify the Four Corners reporter.

At a Senate Estimates hearing last Tuesday, Mr Anderson accepted ultimate responsibility for the controversial move, which — if fringe benefits tax is deemed payable on the legal costs — could leave taxpayers $400,000 out of pocket.

“I had made that decision, I did not seek the board’s approval, nor would I in matters of a similar nature where I am duty-bound to discharge my duties,” Mr Anderson told the Senate.

“Effectively I made that decision on protecting the ABC’s financial decision into the future.”

Asked directly about the reaction of the board members when he informed them the ABC would be covering Milligan’s legal costs, Mr Anderson said: “The board is satisfied with the way I handled it.”

Pressed further on whether his decision was “absolutely and wholly” backed by ABC Chair Ita Buttrose, Mr Anderson said: “Yes”.

ABC managing director David Anderson appears via video link during Senate Estimates at Parliament House last week. Picture: AAP

But The Australian has been told that when board members were told of Mr Anderson’s decision — a fortnight after he had taken it — there was a degree of disquiet that the matter had been presented to them as a fait accompli. Concerns were also raised about how the public would perceive it. “Whenever you have to settle a case and draw a cheque it’s not good, it’s just not good,” one insider said.

“No-one enjoys it and no-one enjoys the publicity associated with settling a case.”

One insider said while it was incorrect for Mr Anderson to suggest the board was “satisfied” by his overall handling of the matter, members did ultimately agree footing the bill for Milligan’s legal costs was the “best, worst outcome”.

Buttrose on Sunday said: “There was no dissension on the board.”

Other senior figures within the public broadcaster said Mr Anderson’s explanation for covering Milligan’s legal costs — that the ABC was potentially facing “vicarious liability” with regards to a separate defamation action launched by former attorney-general Christian Porter — was legitimate.

Mr Anderson told the Senate on Tuesday the ABC had been given legal advice the Porter legal matter and the Laming case were “intertwined”, and one could affect the other — hence the “vicarious liability” argument.

Despite the ABC opting to pay the legal costs for Milligan, the legal action taken by Dr Laming was solely against the reporter and not the ABC.

Former Victorian Liberal Party president and ABC board member from 1998 to 2003, Michael Kroger, said the ABC picking up the costs for Milligan is a “shocking look”.

“It sets a terribly bad precedent, where do you draw the line in the future on private tweets from employees,” he said.

“Anderson was obviously under pressure from the news and current affairs hierarchy and is further evidence they are actually running the ABC, not the managing director and not the board.”

Dr Laming was represented in his defamation matter by solicitor Rebekah Giles who said: “It was a private tweet and we wrote to her (Milligan) on behalf of Dr Laming in her private capacity.

“At no stage did Dr Laming ever threaten the ABC in relation to matter.

“The ABC had no basis whatsoever, in the absence of any threat, to believe that it would be sued.”

Ms Giles said the reference to the “intertwining” of Mr Porter’s legal action against the ABC was “irrelevant to Dr Laming’s claim and completely separate”.

In August, the ABC updated its social media policy for the second time this year.

In a note to staff, Mr Anderson wrote: “What is separately created and posted on personal social media accounts is editorially and legally the responsibility of the owner of the accounts.”

Originally published as ABC board split over David Anderson’s decision to indemnify Louise Milligan in defamation case