Labor senator Nova Peris claims an "aggrieved person" wanting access to her children leaked private emails in an attempt to blackmail her.
In an impassioned and sometimes tearful speech to parliament, Senator Peris said media claims she misused taxpayer funds in order to pursue an affair with Trinidadian Olympic sprinter Ato Boldon were baseless.
The Northern Territory senator claims the leaked private emails, published by News Corp, were used to threaten her by an "aggrieved party" during a long-running dispute over a financial estate and access to her children.
Senator Peris said she was contacted by the aggrieved party in October 2010 and told about documents relating to Boldon.
She was then contacted again in March this year and told if she did not meet certain demands, action would be taken that would "only result in causing major trauma for everyone".
The aggrieved party turned to the media after all legal avenues were exhausted, the senator said.
Senator Peris said she could not verify the veracity of the published emails but was aware Boldon dismissed them as fake.
"What I can say is that the views attributed to me ... certainly don't reflect my views, they don't reflect my values," she said.
Boldon visited the country as part of an Athletics Australia program in 2010 when Senator Peris was separated from her late husband.
Athletics Australia has confirmed it paid for Boldon's travel from Los Angeles to Australia, his accommodation and reasonable expenses.
A spokesman for Senator Peris said an independent audit of the $445,000 given to Athletics Australia for the program in question found no misuse of the funds.
The senator indicated she would not quit parliament over the controversy.
"Despite the hopes of some, this incident will not stop me from serving the people of the NT and advocating on behalf of aboriginal Australians."
Nor, it seems, has it affected her strong relationship with fellow Olympian Cathy Freeman who was described by Senator Peris in the published emails as being "so, so dumb".
The senator vowed to protect and nurture her children them no matter what people said about her now or in the future.
In a show of solidarity, about 10 of her Labor colleagues from the House of Representatives sat in the chamber during here statement.
Senior Labor figures have come out in support of the former Olympic athlete, who was hand picked by Julia Gillard for an upper house seat in 2013.
Senator Peris has asked the Australian Federal Police to investigate how the leaked emails were obtained.
News Corp is standing by its story, despite the senator's claims that it had been advised about the access dispute.
"There are questions still to be answered," editorial director Campbell Reid told Sky News.
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