Embattled Australia Post boss Christine Holgate resigns with ‘deep regret’ amid Cartier watch scandal

Australia Post CEO Christine Holgate quits amid Cartier watch scandal, admitting the gifts ‘didn’t pass the pub test for many’.

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

Australia Post CEO Christine Holgate has resigned “with great sadness” after the Cartier watch scandal.

She said she took the difficult decision “to enable Australia Post to be able to fully focus on delivering for our customers”.

Ms Holgate’s future had been in question since it emerged she approved $20,000 be spent on Cartier watches as gifts for four senior executives.

Ms Holgate, who has led the postal service for three years, said she was proud of what had been achieved in her tenure.

Ms Holgate, who was paid a base rate of $1.5m has said she will not be seeking any financial compensation as part of her resignation.

“I firmly believe the ship needs a strong captain at the helm to help navigate through this time,” she said.

“The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my own personal well being.”

“Consequently, I have made the difficult decision to resign, hoping it will allow the organisation to fully focus on serving our customers.”

Ms Holgate said she would make herself available to participate in the investigation into the purchase of the watches “and any other issues of possible concern”.

The Australia Post chief had been digging in her heels in recent days, after prime minister Scott Morrison called for her to stand aside.

Mr Morrison had ordered a four week investigation into the gifts of the Cartier watches, calling on her to stand aside in the meantime.

Ms Holgate, who was paid a base rate of $1.5m, said she will not seek financial compensation as part of her resignation. Picture: John Feder/The Australian.

At the time, Mr Morrison said the gifts of the luxury watches were outrageous.

“We are the shareholders of Australia Post on behalf of the Australian people,” he said.

“The chief executive … has been instructed to stand aside, if she doesn’t wish to do that, she can go.”

Communications Minister Paul Fletcher and Finance Minister Simon Birmingham, in a joint statement, thanked Ms Holgate for her service.

“Under Ms Holgate’s leadership, Australia Post has risen to the challenge of the enormous increase in parcel volumes that accompanied the COVID-19 crisis,” the statement read.

“Ms Holgate has also driven important reforms at Australia Post that have resulted in more sustainable arrangements for Licensed Post Offices and their franchisees.

“Ms Holgate has confirmed that she remains available to assist the investigation into Australia Post’s governance arrangements and corporate culture concerning the proper use and management of public resources being undertaken by the Department of Infrastructure, Transport, Regional Development and Communications and the Department of Finance. The government will consider the findings of the investigation in due course.”

Optics ‘didn’t pass pub test’

Ms Holgate said she deeply regretted the decision made two years ago “which was supported by the Chair, to recognise the outstanding work of four employees has caused so much debate and distraction”

“I appreciate the optics of the gifts involved do not pass the “pub test” for many,” she said.

“I still believe firmly that the people who achieved the Bank@Post outcome for Australia Post Deserved recognition, their work secured a $220m investment over the following years, which dramatically improved the financial performance of the company, protected a critical community service which more than 50 per cent of the communities in Australia depend on and made our Community Post Offices sustainable for the long term.”

However, Ms Holgate’s lawyer last week said Ms Holgate had not received a proper notification “nor has she been informed as to why she should be stood down, nor has she had any communication regarding … the investigation into Australia Post from either the board or the government.”

“Legally, in my opinion there are no grounds for Ms Holgate to be stood down, and ‘optics’ is not a legally valid defence,” Bryan Belling, of Sydney’s Kingston Reid said.

‘No animosity’

Ms Holgate has also been under fire after it emerged the postal service paid $34,500 for her nine-month stay in a suite at the Grand Hyatt in Melbourne.

Australia Post’s headquarters are in Melbourne, but Ms Holgate lives in Manly in Sydney.

Ms Holgate said she had “no animosity towards the Government”.

“I am deeply appreciative of the significant support I have received from our people, our customers, our partners – especially our Community Licensed Post Offices and individuals across the country,” she said.

“My sincere apologies if my words or actions have offended others as this would never have been my intention because I have always held Australia Post in the greatest regard.”