Prime Minister Scott Morrison and the Australia Post board should apologise to former chief executive Christine Holgate over her departure from the company, a parliamentary inquiry has found.
Chaired by Greens Senator Sarah Hanson-Young, the committee’s final report, released on Wednesday, also called for Australia Post chair Lucio Di Bartolomeo to resign over his “responsibility” for the organisation's failings around her departure.
But government members of the Labor-majority committee refused to sign onto these recommendations, claiming they are "highly politicised".
Ms Holgate left her position after it was revealed last year in a Senate estimates hearing that she had gifted $20,000 worth of luxury watches to four senior executives.
Mr Morrison delivered a stern public rebuke following the revelations on 22 October, telling parliament he was appalled by the purchases and if Ms Holgate did not stand aside, “she can go”.
The inquiry’s report into the circumstances around Ms Holgate's departure found Mr Morrison’s intervention played a "central role" in destablising her position.
It recommends that "the Australia Post board and shareholder ministers and the prime minister apologise to Ms Holgate for denying her the legal principles of procedural fairness and natural justice in her departure from Australia Post".
In powerful testimony before the inquiry in April, Ms Holgate said Mr Morrison had "humiliated" her with his intervention in the matter, severely damaging her mental health.
The report supports this conclusion, saying intense public scrutiny and lack of support from Australia Post led to Ms Holgate going from one of the most influential business women in Australia to “disgraced and humiliated".
The committee has also criticised the role of chairman Mr Di Bartolomeo in Ms Holgate’s departure from the company.
Chair of Australia Post Lucio Di Bartolomeo appears via video link before a Senate inquiry into changes at Australia Post at Parliament House, 27 April, 2021. Source: AAP
She has previously accused him of "unlawfully" standing her down.
"The committee recommends that the chair of Australia Post resign in acceptance of his responsibility for the organisation’s failings with respect to the Holgate matter," the report said.
Mr Di Bartolomeo has denied Ms Holgate was forced out, saying she agreed to stand down on 22 October after the public backlash against the spending.
The non-government members also questioned the veracity of the chairman's evidence and the "lack of effective robust policies and financial oversight processes in place throughout his tenure".
Government members of the committee pointed out in a dissenting report the purchase of the watches occurred before Mr Di Bartolomeo held the role.
"Evidence to the committee highlighted the current chair sought to work in a constructive manner with Ms Holgate during what was a fast-moving sequence of events being played out in the spotlight of the media," they said.
The majority of the committee also recommended the solicitor-general investigate the legality of the instruction from shareholder ministers that the board stand Ms Holgate aside pending an investigation.
Australia Post Chair Lucio Di Bartolomeo. Source: AAP
And, it sought an auditor-general investigation into Communications Minister Paul Fletcher instructing the board to stand Ms Holgate aside.
Speaking to reporters on Wednesday, Senator Hanson-Young said the inquiry had found a "lack of independence" and "political interference" surrounding Ms Holgate's downfall.
"What we've found in this inquiry is that Ms Holgate was treated appallingly," she said.
"She was humiliated by the prime minister in question time and that humiliation sealed her fate."
Mr Morrison has previously defended his response, saying it was not his intention to cause Ms Holgate hurt.
"It was not my intention to cause distress to Ms Holgate and I regret any distress that strong language may have caused to her and indeed did cause to her," he told reporters in April.
"That was not my intention. This issue was about the way taxpayer-funded companies are run."
In a dissenting report, Coalition members of the committee rejected the suggestion Mr Morrison should apologise and Mr Di Bartolomeo step aside labelling the inquiry "highly politicised".
“This has had an impact on many of the recommendations in the majority report and the events leading up to and during the inquiry became a significant distraction to the valuable work of Australia Post,” it said.
"Liberal and Nationals senators do not support aspects of the analysis of evidence and many of the recommendations of the majority report."
Coalition members said the claim Ms Holgate had been denied procedural fairness is "contested" and the auditor general would not have jurisdiction to review Mr Fletcher's conduct.
"Whilst we're focusing on the jobs of Australians, we've got a Labor-stacked opposition committee focusing on themselves," senior cabinet minister Stuart Robert told SBS News.
Labor's communications spokesperson Michelle Rowland called on Mr Morrison to heed the report's recommendations.
"It's very clear that there were double standards here," she told SBS News.
Ms Holgate has previously directly requested Mr Morrison apologise to her, accusing him of playing a key role in her downfall.
In a statement on Wednesday, she said she wanted to "dedicate today's outcome to everyone who has suffered bullying and has felt powerless and alone".
Mr Di Bartolomeo also issued a statement on Wednesday, saying the company recognised "the importance of the Senate Inquiry and acknowledges the final report published today."
"Australia Post remains engaged in a mediation process with Ms Holgate around the circumstances of her departure from the organisation," he said.
