AUS
NZ
UK
CA
USA
IND
Summary
- Australia Post has been in limelight over the past week after allegations of misuse of federal funds.
- Former Chief Executive Christine Holgate was accused of splashing thousands of dollars of taxpayer’s money on senior executives.
Australia Post CEO Christine Holgate has stepped down from her post after allegations of misuse of taxpayers’ money. Holgate’s decision comes after PM Scott Morrison criticised her act of gifting expensive Cartier watches to senior executives, adding, “she should go”.
The government had launched an investigation into the purchase of Cartier watches valued at $20,000.
Christine Holgate stated that she regrets the decision made by her two-years ago that was also supported by the Chair. The gift was given to a senior executive who had done outstanding work for the postal service provider.
She gave the resignation to Chairman and Board of the postal service organisation. She did not take six months’ worth pay-out on exit and confirmed that she would not be taking any financial compensation either.
She continues to assist in the Shareholder Department investigation in the Australia Post’s expenditure. Ms Holgate had been associated with the role of Chief Executive and Managing Director since October 2017.
Last week on Wednesday, many post offices in the country shut their doors in retaliation to the treatment of Ms Holgate by the Federal Government.
According to media reports, some team members of the postal service provider also note that she saved the organisation from bankruptcy.
Ms Holgate had been praised by licensed post office (LPO) owners after she penned a better Bank@Post deal with financial institutions. Media sources quote LPO owners who were running loss-making franchises and losing in a big way earlier. After the new deal, financial institutions also shared the costs of operating banking services.
They also speculate Ms Holgate designed a mechanism to share some profits with licensees which did not go down well with the Government.
PM Scott Morrison’s reaction to Holgate’s watches saga, hence, has been accused of double standard.
Image Source: © Kalkine Group 2020
Some also say that Government has overpaid millions for the land acquisition of Sydney airport, but it was never made an issue. In October, the Federal auditor general reported that the Government had paid extra $27 million for the land to develop Sydney’s second airport.
With the festive season looming, Australia Post would be busy. Although they have prepared for the peak season, they are facing challenges to operate safely.
Australia is expected to witness the biggest e-commerce Christmas ever since many households have started to shop online. It is highly likely that online sales are expected to go through the roof this Christmas.
As a logistic provider to e-commerce companies, the postal services department is getting ready for a busy season.
