Australia Post pays Christine Holgate $1 million settlement

The former CEO will also have her $100,000 worth of legal costs covered by Australia Post but with no admission of liability.

Australia Post will pay its former chief executive Christine Holgate $1m after she was forced out over the purchase of Cartier watches for her senior staff.

Ms Holgate will also have her $100,000 worth of legal costs covered for her by Australia Post after a lengthy mediation following her accusations she was bullied out of her job by the board and the Morrison government.

With the payout, Ms Holgate has dropped all legal claims against her former employers and Australia Post has made no ­admission of liability.

The payout takes the cost to taxpayers of Ms Holgate’s departure to about $2m, once chief executive recruitment fees and the cost of appearing before a Senate inquiry are taken into ­account. This is the equivalent to the annual salaries of about 40 ­average post workers.

In a joint statement with Ms Holgate on Wednesday, Australia Post said it regretted the way Ms Holgate left the postal service and “Australia Post regrets the difficult circumstances surrounding Ms Holgate’s departure from her role as CEO”.

“Australia Post recognises and thanks Ms Holgate for her outstanding contribution and strong leadership during her employment as CEO of Australia Post,” the statement said.

“Australia Post wishes Ms Holgate the best in her future endeavours.”

The resolution of negotiations between Ms Holgate and Australia Post was first flagged by The Australian’s Margin Call column on Tuesday.

Ms Holgate is now head of private parcel-delivery company Global Express and several former executives at Australia Post have left to join her.

Australia Post chairman Lucio Di Bartolomeo has resisted calls from federal politicians in the past six months to resign from the board over Ms Holgate’s departure. Mr Di Bartolomeo claims Ms Holgate agreed to stand aside after Scott Morrison demanded in ­parliament she stand aside or “go” following revelations she gifted four Cartier watches worth $20,000 to senior Australia Post executives who secured a banking deal worth $66m a year in 2018.

Ms Holgate maintains she never agreed to stand aside, saying the action was unlawful and Mr Di Bartolomeo “bullied” her out of her job.

On Wednesday, Communi­cations Minister Paul Fletcher, who announced Ms Holgate’s suspension in parliament last Oct­ober, said he was pleased there was now a settlement.

“This was a matter between Australia Post and Ms Holgate. The government is pleased to hear it has been resolved and wishes Ms Holgate well for the ­future,” he said.

“The government is also pleased Australia Post has been continuing to deliver record numbers of parcels, even with border closures and ongoing logistic challenges.

“The incoming (CEO) of Australia Post, Mr Paul Graham, will take up his position in a few weeks’ time; this will be an important milestone as Australia Post positions itself to respond to continuing changes in its operating environment.”

Opposition communications spokeswoman Michelle Rowland said the Prime Minister had “diminished himself with that juvenile and premeditated display”, ­displaying “double standards” by demanding Ms Holgate “stand aside or go”.

Ms Rowland also took aim at the board – which includes a raft of Liberal appointees, including former Liberal senator Michael Ronaldson and former Liberal federal and state director Tony Nutt. “It was the job of the board to withstand their pressure, and to act diligently to uphold due process and natural justice,” Ms Rowland said.

“(Wednesday’s) settlement is an admission that did not occur.”