Australia Post CEO stands aside as Prime Minister Scott Morrison slams Christine Holgate

Australia Post’s chairman has spoken out for the first time after revelations its CEO is standing aside for spending $12k on Cartier watches.

Australia Post has spoken out for the first time since the news its CEO Christine Holgate is standing aside following revelations senior executives were awarded Cartier watches as a “bonus”.

Ms Holgate’s decision comes after Communications Minister Paul Fletcher announced an independent investigation into Australia Post in light of the news in today’s Senate Estimates that four executives were given generous rewards for helping secure contracts

“I have asked the chair (of Australia Post) to provide the full support of the company for this investigation, and I have also asked the chair to inform the chief executive that she will be asked to stand aside during the course of this investigation,” he said.

Mr Fletcher earlier said he was “as shocked and concerned as everybody else” to discover the revelations about the watches in Senate Estimates.

Australia Post chairman Lucio Di Bartolomeo said the organisation would “fully co-operate” with the investigation after Ms Holgate revealed the watches were valued at around $3000 each.

“The Australia Post Board and management team will fully cooperate with the recently announced investigation to be conducted by shareholder departments,” he said in a statement to news.com.au.

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

“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.”

Earlier, Scott Morrison bluntly told Ms Holgate if she doesn’t stand aside “she can go”.

In an extraordinary attack, Mr Morrison said he was disgusted by the abuse of taxpayers’ money.

“I was appalled and it is disgraceful and it’s not on,” he said in Question Time today.

“So, immediately, I spoke with ministers and from those discussions, decided that there had to be an independent investigation done by the Department, not by Australia Post, and that the Chief Executive should stand aside immediately.

“That report will come back to me and my members of my Cabinet and if there are issues to be addressed with board members, then they will be addressed then.

“This all happened within an hour, so appalled and shocked was I by that behaviour, as any shareholder would in a company raise their outrage if they had seen that conduct, by a chief executive, the management or the board, they would insist rightly on the same thing.

“We are the shareholders of Australia Post on behalf of the Australian people, is that the action was immediate, and if the Chief Executive wished to stand aside, she has been instructed to stand aside, if she doesn’t wish to do that, she can go.”

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

Minister for Finance Mathias Cormann and Minister for Communications Paul Fletcher later confirmed in a statement that an investigation into the watches would be forthcoming and that Ms Holgate would stand aside until it was complete.

“We have instructed the Department of Infrastructure, Transport, Regional Development and Communications, together with the Department of Finance, to conduct a formal investigation into the matter,” the statement read.

“The investigation by the shareholder departments will be supported by an external law firm.

We expect this investigation to commence immediately, and to be completed within four weeks.

“The investigation will also examine the actions of Board members in relation to this matter, and will report back to Cabinet. The Chief Executive of Australia Post will be standing aside from her position for the duration of the investigation.”

The furore follows a string of recent controversies including revelations Australia Post spent $700,000 on plants and drama over the delivery of Pauline Hanson-branded stubby holders to public housing towers in September.

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Prime Minister Scott Morrison condemned Ms Holgate’s actions. Picture Gary Ramage

Earlier, a 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 Kimberly 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.”

Labor’s communications spokeswoman Michelle Rowland slammed the decision and urged the Morrison Government to act.

“Australia Post is a cherished national institution and it must set a high standard,’’ she said.

“Today’s evidence that $12,000 was used on luxury watches does not meet that test.”