New Australia Post chief named day before Christine Holgate fronts Senate inquiry
The Morrison government has named a new chief executive for Australia Post just 24 hours before a Senate inquiry will examine the issues surrounding the former chief executive’s departure.
The appointment of the Woolworths supply chain head, Paul Graham, comes five months after the departure of Australia Post’s former executive, Christine Holgate, over a luxury watch expenses scandal..
The announcement has left nongovernment MPs shaking their heads, questioning why the government would announce the new chief executive on the eve of the Senate inquiry dealing with Holgate’s departure.
The Greens communications spokesperson, Sarah Hanson-Young, said the timing was “inappropriate”.
“While the matter of the termination of Ms Holgate’s employment is before a Senate inquiry, the appointment of a new CEO is inappropriate and seeks to undermine the Senate inquiry process,” she said.
“It’s shameful that the Morrison government is rushing to appoint a new CEO the day before Christine Holgate has the opportunity to air her allegations that she was ‘thrown under the bus’ and ‘humiliated’ in a manner not replicated by the Morrison government when it comes to the alleged misconduct of men in its ranks.”
Labor’s communication spokesperson, Michelle Rowland, agreed.
“For the timing to be so blatantly provocative is not only disrespectful to the incoming CEO, Mr Graham, but shows Scott Morrison remains entirely consumed by short-term political management,” she said.
Graham won’t take up the role until September. His appointment followed a recruitment process led by executive headhunting firm Egon Zehnder, an exercise estimated to have cost between $350,000 and $500,000.
Graham will receive a minimum of $1.46m as his annual salary, a figure which has the potential to be doubled through bonuses and the fact that he has previous experience with postal services, having worked as a senior executive at the German multinational package and supply chain company Deutsche Post DHL.
Holgate, who last week said she was “humiliated” by Scott Morrison’s comments about her, will give evidence at Tuesday’s inquiry.
Holgate resigned from Australia Post on 1 November, 10 days after a Senate estimates hearing revealed she had used company funds to purchase four Cartier watches as a thank-you for senior executives involved in the Bank@Post project – an initiative franchisees have credited with saving their businesses.
The designer watches, worth $20,000 in total, had been awarded as bonuses two years before the October 2020 Senate estimates hearing. There were immediate calls for an investigation into the gifts and Scott Morrison castigated Holgate, telling the parliament if Holgate did not “wish [to stand aside] she can go” that same day.
She has since, in a submission to the Senate, disputed she ever voluntarily stood aside from her role, and alleged the Australia Post chair, Lucio Di Bartolomeo, unlawfully stood her down and “lied repeatedly to the Australian people” and misled parliament by stating she had done so voluntarily.
Di Bartolomeo and Australia Post, in a submission to the same inquiry, have maintained Holgate voluntarily made the decision to stand aside while an investigation was carried out, and then resigned 10 days later.
Holgate has remained a popular figure with franchisees since resigning from her job, and has received political support from across the spectrum since her resignation.
An independent review into the watch bonuses, led by the law firm Maddocks, found there was no documentary evidence the Australia Post board approved the gifts, but also found “no indication of dishonesty, fraud, corruption or intentional misuse of Australia Post funds by any individual involved in the matters relating to the purchase and gifting of the Cartier watches”.
Australia Post launched a review of its gifts and bonuses policy in the wake of the review, to ensure it matched public service obligations.
As a government enterprise, Australia Post is owned by Australian taxpayers, who remain its only shareholders, but operates independently from the government as a business.
Holgate will open tomorrow’s Senate inquiry with her evidence. The hearing is due to begin at 10.30am.