Australia Post’s bizarre excuse for refusing to disclose corporate credit card spending

Beleaguered CEO Christine Holgate is facing fresh scrutiny over Australia Post’s bizarre excuses for a massive credit card bill.

Embattled Australia Post CEO Christine Holgate and her personal office have spent $375,000 on corporate credit cards since her appointment, prompting demands for a line-by-line disclosure on the spending.

The expenditure, the bulk of which is “organisational spending” and not personal, could now hold the key to Ms Holgate’s tenure as CEO, regardless of whether or not the spending was approved and legitimate under Australia Post policies.

Insiders say that’s because the terms of inquiry were established with references to her “personal expenses” that “sets up” Ms Holgate and asks that a determination be made over whether Australia Post executives have adhered “to high standards regarding the expenditure of money.”

Ms Holgate has a personal corporate credit card for personal use that racked up a relatively modest $88,100 since she was appointed to the job three years ago.

But it’s a second card that is relatively new but has already been used for $287,000 in spending in the last financial year alone that’s captured Labor’s attention.

Australia Post has to date offered bizarre excuses to parliament on why it can’t provide a detailed breakdown of the spending including that “work from home” requirements in Melbourne.

“Australia Post’s Melbourne Headquarters have been closed for several months, due to the COVID-19 lockdown in metropolitan Melbourne. As a result, Melbourne office staff have been working remotely and access to some records has been restricted,’’ Australia Post said.

That’s despite the fact that all of the information is available digitally and online for the credit cards and that Australia Post was able to provide a total for spending on the credit cards in each financial year.

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Ms Holgate chose a very expensive watch to wear to her Senate estimates hearing. Picture: NCA NewsWire / Gary Ramage

Labor Senator Kimberley Kitching told news.com.au that Australia Post’s explanation as to why it won’t provide an itemised list of spending does not make sense.

“They should furnish the Senate with the credit card statements which I had already requested, but I was told that they couldn’t provide those statements because employees were working from home,’’ Senator Kitching said.

After the previous chairman John Stanhope left the organisation in November, 2019, the “Office of the CEO” took responsibility for any previous charges and the credit card was used to purchase flowers, catering, car hire and travel.

This is the second corporate card that has racked up $287,0000 in spending last year.

“The Group Chief Executive Officer & Managing Director has not been issued with a travel charge card,’’ Australia Post said.

“However, there is one credit card in the name of the ‘Office of the CEO’ used to pay for various organisational expenditure, including travel expenses. Organisational expenditure paid with this credit card totalled $287,063.44 for the 2019/20 financial year.

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The bulk of the spending was “organisational” and not personal. Picture: NCA NewsWire/Gary Ramage

“The credit card was used for a wide range of organisational expenditure, including in relation to the Group Chief Executive Officer & Managing Director, the Board Chair, the Executive Team, the Office of the CEO, and the Extended Leadership Team.”

The categories of expenditure included: accommodation, Australia Post conferences, functions and events, car hire, catering, charitable donations, flights (domestic and international) and booking fees, flowers, gifts, meals, taxis and gifts.

While Ms Holgate was initially granted a $32,000 relocation allowance to cover the cost of her living at the Grand Hyatt when she worked in Melbourne, Australia Post said she now covered her own costs.

The spending on her personal credit card included expenditure on travel expenses, accommodation, charitable donations, gifts, meals, professional memberships, taxis, technology, training and professional development

“There is one credit card in the name of the Group Chief Executive Officer & Managing Director,’’ Australia Post said.

“An itemised breakdown of the charges over this period (almost three years) would involve an unreasonable diversion of resources.”

The credit card was also used for $14,673.23 in expenditure for the 2018/19 financial year and $29,297.78 for the 2019/20 financial year.

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Christine Holgate's eye-catching Range Rover.

On Monday, Ms Holgate was delivered another blow with the inquiry into the organisation’s spending now expanded to include her “personal expenses” and credit card use.

The Morrison Government released the terms of reference into the inquiry into the controversial purchase of four Cartier watches for senior executives.

As expected, the terms of reference are much broader than that purchase alone and it’s another sign that further expenditure is expected to come to light involving not just Ms Holgate but by the board and other executives.

While Ms Holgate has argued the Cartier “reward” was ticked off by the Australia Post board, the former chairman and the board have argued they were not aware that it would be a Cartier watch specifically, suggesting the choice was at the CEO’s discretion.

The new terms of reference state the investigation will consider whether Australia Post has spent money “ethically” and acted in a manner expected of a Government Business Enterprise.

“The Government expects all government entities, including Government Business Enterprises, to act ethically and adhere to high standards regarding the expenditure of money, as the public also rightly expects,’’ the terms of reference state.

A report will be provided to the Morrison Government within four weeks of the investigation commencing.