Big problem with Australia Post CEO Christine Holgate’s successor, Rodney Boys

The man set to take over as Australia Post’s CEO made a cameo appearance at Senate estimates on Thursday and there was one big problem.

As Australia Post’s CEO Christine Holgate’s career hangs in the balance over the Cartier watch furore, the man tapped to step into her job is the same executive who couldn’t remember which corporate credit card was used to buy the timepieces.

A growing number of Liberal MPs are now urging Ms Holgate to consider whether her time’s up as the nation’s second highest paid public official.

It follows a political furore over revelations the government-owned entity signed off on $12,000 in expenditure to purchase designer watches for highly paid executives.

A vegetarian who relaxed at a Buddhist monastery in Bhutan before taking up the job, her starting salary was once touted as up to $3 million a year when bonuses were included.

The remuneration represented a pay cut from her predecessor Ahmed Fahour, who earned a startling $5.6 million to run the nation’s postal service.

But whatever she’s paid, it’s too much, according to some angry Liberal MPs.

“Surely Christine Holgate can read the room. She should go,’’ Liberal Senator James Patterson told news.com.au.

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Australia Post chief executive Christine Holgate during Senate estimates in Canberra. Picture: Gary Ramage

Former Australia Post CEO Ahmed Fahour at a Senate estimates hearing in 2017. Picture Kym Smith

Australia Post Chairman, Lucio Di Bartolomeo, has confirmed the Board and management team will fully co-operate with the recently announced investigation into the watches anointing Rodney Boys, the chief financial officer, to act in the role.

“We remain committed to delivering for our important stakeholders – our people, our Post Office partners, our customers and the community,’’ Mr Di Bartolomeo said.

“Group CEO & Managing Director Christine Holgate will stand aside during the investigation. During this time, Rodney Boys, Chief Financial Officer will be acting in the role.”

But that’s the same Mr Boys who made a cameo appearance at Senate estimates on Thursday during an excruciating cross-examination by Labor Senator Kimberley Kitching.

During the hearing, Senator Kitching asked if the Cartier watches were purchased on a corporate credit card in the name of the Office of the CEO.

“I don’t recall, Senator. I am happy to take it on notice,’’ Ms Holgate replied.

What followed was another brutal cross-examination as the organisation’s chief financial officer confirmed he wasn’t sure either.

BOYS: Unfortunately, I am not aware either. We would have to take it on notice.

KITCHING: Mr Boys just so you’re aware, I’m going to come to your response to Question on Notice 1740 where you say you are unable to provide a breakdown of the corporate credit card within COVID-19.

And I presume that you actually do some online banking. But I’m going to come to that. But just on this, you can’t tell me what card this was purchased on? And you’re the CFO. You can’t tell me? You spent $12,000 on watches and you can’t tell me which credit card you put that money on?

BOYS: That’s correct.

KITCHING: You are the Chief Financial Officer, and you can’t tell me where the expenditure was put against?

Australia Post bought four Cartier watches worth $3,000 each to thank senior employees for their work on a lucrative project @politicsabc #auspol pic.twitter.com/s5neNXi4fS

— Matthew Doran (@MattDoran91) October 22, 2020

The Prime Minister swiftly declared on Thursday he was “appalled and shocked” by the purchase and suggested that if Ms Holgate refused to stand aside “she should go”.

“We are the shareholders of Australia Post on behalf of the Australian people. She has been instructed to stand aside. If she doesn’t wish to do that, she can go,’’ he said.

Perhaps, it was the steady drumbeat of leaks in recent months that should have rung alarm bells that Ms Holgate has her share of detractors.

Those leaks include revelations that Australia Post threatened to call police unless the City of Melbourne delivered Pauline Hanson branded stubby holders to residents in lockdown in Melbourne’s public housing towers.

At the time, Australia Post was trying to woo Senator Hanson’s vote for an agreement to relax daily postal deliveries during COVID.

But Ms Hanson’s stubbie holders were seen as particularly inflammatory given just days earlier she had attacked the public housing residents as “drug addicts” and alcoholics.

Australia Post chief executive Christine Holgate. Picture Mark Cranitch.

Labor Senator Kimberley Kitching delivered a brutal cross-examination. Picture: David Geraghty

Way back in 2018, the Australian Financial Review reported that Ms Holgate had raised eyebrows by turning up to a Melbourne Airport sorting plant with her mum and a Buddhist nun to bless the building.

Labor also seemed remarkably well-briefed on Thursday that senior executives had received a “reward” for their work.

Worse, Ms Holgate made her appearance at Senate estimates on Thursday wearing a gold watch from Bulgari that retails for between $20,000 and $48,000.

The Serpenti Tubogas watch is billed as offering it’s owner the “sinuosity of the snake with the contemporary soul of tubogas.”

“Evoking both the sensual curves of a woman and the fluid shape of the serpent, the timepiece is crafted with the shapely lines of this specific technique, with a flexible and tubular litheness,’’ the Bulgari website states.

A clearly shaken Ms Holgate attempted to defend the purchase of the Cartier watch arguing it was a legitimate reward for “an inordinate amount of work”.

But her attempts to claim Australia Post was a “commercial organisation” was disputed by Labor senator Kimberley Kitching who said it was taxpayers’ money she was talking about.

“There were a small number of senior people who put in an inordinate amount of work and they did receive an award from the chair, myself, and on behalf of the board,” Ms Holgate said.

“We are a commercial organisation. It was a recommendation from our chair that these people get rewarded.”

“I have not used taxpayer money,” she said.

“We do not receive government funding. We are a commercial organisation. It was a recommendation from our chair that these people get rewarded.”