‘Perverse universe’: Seven queried for not sacking Taylor Auerbach

Seven’s Spotlight team operates in a ‘perverse universe’ in which ­former producer Taylor Auerbach was not sacked for spending ­thousands of company dollars on ‘illicit activities’ for Bruce Lehrmann, the Federal Court has heard.

Taylor Auerbach leaves the Federal Court in Sydney on Friday. Picture: NCA NewsWire / Nikki Short

Seven’s Spotlight team operates in a “perverse universe” in which ­former producer Taylor Auerbach was not sacked for spending ­thousands of company dollars on “illicit activities” for Bruce Lehrmann while trying to claim his ­exclusive interview rights, but instead was instructed by his boss to cover up the misdeed, the Federal Court has heard.

Justice Michael Lee on Friday afternoon described Auerbach, who this week blew up the defamation case of Mr Lehrmann, Network 10 and presenter Lisa Wilkinson, as a man who wants to do “much damage” to his former employer, the Seven network.

Justice Lee has now retired to finish writing his judgment in the matter, and determine whether Ten and Wilkinson defamed the former Liberal staffer when conducting an interview with Brittany Higgins on The Project in which she claimed she was raped in Parliament House but did not name Mr Lehrmann as the alleged ­attacker. Ten this week successfully ­applied to reopen its case after ­Auerbach signed affidavits claiming Seven gave Mr Lehrmann ­expensive perks to persuade him to sign over his exclusive interview rights last year.

The Federal Court previously heard Seven paid Mr Lehrmann 12 months of rent in exchange for the interview. With his lease paid by Seven due to expire, Mr Lehrmann on Friday moved out of his apartment in Sydney’s northern beaches and into a friend’s home.

Auerbach also claimed Mr Lehrmann leaked confidential ­information – including Ms Higgins’ private text messages and an AFP statement of facts – obtained during his 2022 criminal trial for the alleged rape of Ms Higgins to the Spotlight team as part of an ­exclusive interview he eventually conducted with the program.

The criminal trial was ultimately aborted and Mr Lehrmann has always maintained his innocence.

Network 10 barrister Matthew Collins KC told the court Auerbach was a “consistent” and “credible” witness, who was ­simply tasked with “building a rapport” with Mr Lehrmann while trying to get him on board for a tell-all interview.

Auerbach has given evidence this week that Seven reimbursed Mr Lehrmann for sex workers and illegal drugs after the former ­Liberal staffer had been on a “bender”, and admitted to charging his Seven-issued corporate card with thousands of dollars for Thai massages for himself and Mr Lehrmann. Auerbach told the court he ­resigned the morning after the credit card misuse, but ultimately kept his job, and was told by his former boss Steve Jackson to try to get the masseuse to reverse the charges so the misdeed would go unnoticed.

“I was instructed by Mr Steve Jackson to track down the person involved in the evening and ­offered to pay cash to clear the transactions from Seven’s credit card statement,” Auerbach told the court on Friday. Mr Lehrmann has denied getting a massage.

In a message released by the court on Friday night, Jackson wrote to Auerbach saying: “Mate – you need to reconcile that cash ­advance urgently – as in it needs to be done this week.”

Dr Collins, in closing Ten’s case, said it was “staggering” that Auerbach was not sacked after disclosing the credit card misuse, and said the incident showed the ­“perverse universe” in which Spotlight operated.

“I know what I’d do if it was my employee,” Dr Collins said. “I wouldn’t be saying go and get the credit card reversed and pay cash and you can keep your job.”

The Spotlight program with Mr Lehrmann featured not only a sit-down conversation, but never-before-seen CCTV footage of Mr Lehrmann and Ms Higgins in Parliament House on the night of the alleged rape, and an audio recording of a five-hour pre-interview involving Wilkinson, The Project producer Angus Llewelyn, Ms Higgins and her partner David Sharaz.

Mr Lehrmann has denied leaking confidential information to Spotlight.

Auerbach concluded giving evidence on Friday but not before a new raft of previously undisclosed private documents belonging to Ms Higgins were ­released by the court as a result of his testimony. Those documents included a draft of Ms Higgins’ book which included details of a night out with three former cabinet ministers who she referred to as “the big swinging dicks” and described a Parliament House culture where ministers poured whiskey into the mouths of staffers at Christmas.

The draft book was published by the court because it was in Auerbach’s possession. He claims Mr Lehrmann leaked the chapters, which were subpoenaed by his lawyers during the criminal trial.

Other revelations on Friday included that ­Auerbach initially discussed ­paying Mr Lehrmann $200,000 for his Spotlight interview, to help the former Liberal Party staffer pay off his “many legal fees”.

In messages released by the Federal Court on Friday night, Auerbach told Jackson “we’re in luck” because John Macgowan was handling Mr Lehrmann’s media. “I’ve told him to pick the most expensive restaurant in Canberra and it’s my shout,” he wrote, in messages sent during Mr Lehrmann’s criminal trial.

In another message, Auerbach said “it’s fathomable” that Ms Higgins “blew up someone’s life so she wouldn’t get sacked for getting hammered and breaking into ­parliament”.

Auerbach messaged Jackson after meeting Mr Macgowan on October 21, 2022, informing him of documents Mr Lehrmann could provide Spotlight with, in addition to an interview. “They have six hours of audio recordings with Brittany Higgins and Lisa Wilkinson in which Brittany is ­apparently coached and says ‘don’t worry I can turn the waterworks on and off like a tap’,” Auerbach wrote in the message “They also have text messages where Brittany is frustrated with how the AFP is running the case and says ‘if they don’t start toeing the line I’ll go on the Project and start crying’.”

In the messages, Auerbach also said: “Bruce is planning massive defamation cases against Ten and other outlets in every state of Australia and also eyeing malicious prosecution.”

Justice Lee cast doubt about Auerbach’s intentions, describing him as a “man who desperately wanted to do as much damage to his previous employer as he could conceivably do”. The judge said it was “very ­unusual” that, while giving evidence, Auerbach claimed he “hates” Jackson, and admitted to backgrounding journalists about him after he was appointed media adviser to NSW Police Commissioner Karen Webb.

“It’s very unusual, that degree of animus that one sees from the golf club video,” Justice Lee said, referring to a video played for the court, in which Auerbach is seen smashing Jackson’s golf clubs.

“One could rationally form the view that this is a man who desperately wanted to do as much damage to his previous employer as he could conceivably do.”

The judge clarified that “doesn’t mean he’s not a truth-teller”. “But don’t put him up as some sort of notable public-interested person who was coming along to get something off his chest, because he thought he had to assist His Majesty’s justices,” he said. “He’s a man who wanted to make a range of allegations against people under absolute privilege.”

Wilkinson’s barrister Barry Dean submitted that Auerbach was an “impressive witness”. He said Mr Lehrmann had a “financial motive” to leak confidential documents to Seven as part of his Spotlight interview, including that he was given 12 months of free rent by the network.

Mr Lehrmann’s barrister Matthew Richardson SC said there were inconsistencies in Auerbach’s evidence, and said Auerbach’s claims that Spotlight executive producer Mark Llewellyn received confidential documents from Mr Lehrmann were flimsy.

Justice Lee is expected to ­deliver his judgment as early as next Wednesday.