AMP stands firm as Boe Pahari crisis grows

AMP is doubling down on its position to only release the final investigation into sexual harassment by executive Boe Pahari.

AMP Capital executive Boe Pahari, who is at the centre of sexual harassment allegations, near AMP’s offices in Sydney on Thursday. Picture: Britta Campion

Embattled wealth group AMP is doubling down on its position to only release the final investigation into sexual harassment by executive Boe Pahari, even though the complainant wants her initial report on the incidents made public.

The issue, and shareholder demands for accountability over AMP’s cultural shortcomings, are creating a deepening crisis for the company as some investors label Mr Pahari’s position untenable and apply pressure on the board.

Amid the furore, Mr Pahari was sighted heading out of AMP’s Circular Quay Sydney headquarters on Thursday around lunchtime for almost two hours.

Mr Pahari, who was promoted last month to lead AMP Capital and is usually based in London, did not appear to be feeling the heat. But he refused to answer questions when The Australian approached him outside AMP’s office, instead dashing across the road.

That comes as sources pointed to a hit list within AMP Capital that was administered by senior members of Mr Pahari’s team as they sought to exit or manage out selected staff. Mr Pahari put in his new leadership team in July, which coincided with the departure of several senior staff and saw head of real estate Carmel Hourigan ­announce she was leaving to join ASX-listed Charter Hall.

The increased pressure on AMP follows Australia boss Alex Wade suddenly leaving the group early this month due to inappropriate conduct, including sending lewd photos to a female employee.

It was also exacerbated by former AMP Capital executive Julia Szlakowski, who left the company in 2018, making public parts of her complaint against Mr Pahari and accusing the company of “persistent and misleading efforts” to downplay sexual harassment that she reported. As a result of the investigation into the conduct of her manager Mr Pahari, he was financially penalised as much as $500,000, while AMP settled the claim with Ms Szlakowski.

Her complaint outlined a number of instances of Mr Pahari using inappropriate language, extending her hotel booking without permission, calls and texts in the early hours of the morning after a night out, and referring to his “limp dick” when she declined to use his credit card to buy clothing.

An investigation into the complaint was undertaken by Andrew Burns QC, a specialist in labour and employment law in the UK.

On Thursday, an AMP spokesman reiterated that the board was willing to release the QC’s investigation report, subject to Ms Szlakowski’s consent.

“The QC’s investigation report is the most appropriate document on the details and findings of the 2017 investigation. We are providing access for Ms Szlakowski and her lawyers to review in order to seek her consent,” he said.

Mr Pahari has provided permission for the release of the document, even though it is understood he has not sighted it. But Ms Szlakowski’s camp — which has already consented to the release of her seven-page complaint and the shorter two page investigation findings — is unlikely to be happy with the release of just one document.

Maurice Blackburn principal Josh Bornstein earlier this week said Ms Szlakowski had never seen the contents of the entire probe. A spokesman for the law firm on Thursday said Ms Szlakowski was not planning legal action against AMP “at this point in time”.

Several AMP shareholders including substantial shareholder, fund manager Allan Gray, and the Australian Council of Superannuation Investors have said Mr Pahari’s position looks untenable.