Australia Post shop owners have said the resignation of Christine Holgate as the company’s CEO will send them broke.
Ms Holgate resigned on Monday amid growing scrutiny into lavish company expenses after it was revealed she had gifted senior executives four Cartier watches worth nearly $20,000.
However, a group representing 2850 Australia Post licencees has said there will be ‘no way back from this’ for the company and workers will be ‘all the poorer’.
‘[Australia Post] is back to where it was 10 years ago when the business was virtually worthless and insolvent.’ Angela Cramp, executive director of Licensed Post Office Group said.
Former Australia Post CEO Christine Holgate (pictured) resigned on Monday after growing pressure following an investigation into lavish expenses and gifts at the company
A group representing 2850 Australia Post shop owners has said there will be ‘no way back from this’ for the company and workers will be ‘all the poorer’ after Ms Holgate’s resignation
‘The last two CEOs wanted everything to be done on a smartphone, that there was no need for post offices – but Christine Holgate came in and was determined to have licensees see a return on their investment,’ Ms Cramp told Newscorp.
One of the major achievements Ms Holgate made as CEO was securing a deal worth $220million with the large banks to allow customers to do banking at Australia Post shops.
The four Cartier watches that sparked the expenses scandal were given to senior executives for clinching the 2018 deal.
Ms Cramp said 80 per cent of post offices across Australia are privately owned businesses trying to stay afloat and Ms Holgate had made changes to make them sustainable.
She also warned of possible industrial action, saying Australia Post licensees would ‘have to do something’.
Ms Holgate forfeited a $700,000 payout when she walked away from her $1.5million-a-year role on Monday.
Previous Australia Post CEO Ahmed Fahour, walked away with $8.7 million worth of bonus payments and superannuation on top of his $2 million salary.
Australia Post confirmed on Monday that Ms Holgate had chosen not to claim a cent from the company she has run since 2017.
In a statement, Ms Holgate said her decision to resign was based on the expenses scandal being a ‘significant distraction’ on her ability to do the job.
‘I have offered today the Chairman and Board of Australia, with great sadness, my resignation as chief executive with immediate effect,’ she said in a statement.
Ms Holgate admitted spending $12,000 on four Cartier watches for four executives, but it was later revealed the true figure was closer to $20,000
Ms Holgate later accused the prime minister of humiliating her and said there were no legal grounds for her standing aside
‘We have prepared significantly for this peak, but still face significant challenges — keeping our people safe, managing the biggest e-commerce Christmas ever and planning in the face of unpredictable seasonal weather.’
Scott Morrison had previously labelled the Cartier gifts as ‘disgraceful and appalling’ in a fiery speech to parliament, and declared if the chief executive did not wish to stand aside for an investigation ‘she can go’.
Ms Holgate later accused the prime minister of humiliating her and said there were no legal grounds for her standing aside.
She has also promised to continue to cooperate with a four-week investigation into Australia Post being conducted by the federal finance and communications departments despite her resignation.
Ms Holgate said she had decided to stand down as it was ‘critically important’ that Australia Post was focused on supporting their customers and communities as Christmas approaches.
‘The current issue I am managing is a significant distraction and I do not believe it is good for either Australia Post or my personal wellbeing.
‘Consequently, I have made the difficult decision to resign, hoping it will allow the organisation to fully focus on serving our customers.’
She is also standing by the purchase of the luxury watches as bonuses to the executives.
‘However, I deeply regret that a 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,’ Ms Holgate said.
‘I appreciate the optics of the gifts involved did not pass the ”pub test” for many.’
Prime Minister Scott Morrison (pictured) said the gifts were as unacceptable and ordered Ms Holgate to step down
Ms Holgate said she had no animosity towards the government and enjoyed working with Mr Morrison and senior ministers during her time at the organisation.
Opposition Leader Anthony Albanese said last week Ms Holgate’s position at Australia Post was untenable.
Her resignation comes after her lawyers hinted at a looming legal battle over the Prime Minister’s decision to have her stood down.
A statement from Bryan Belling, partner at employment law firm Kingston Reid last week said: ‘Legally, in my opinion there are no grounds for Ms Holgate to be stood down, and ”optics” not a legally-valid defence.’
‘Nor has she been informed as to why she should be stood down.’
Mr Morrison lashed out at Ms Holgate in parliament last week, calling the gifts disgraceful and appalling.
‘She’s been instructed to stand aside and if she doesn’t do that, she can go,’ Mr Morrison said.
Friends have since revealed the businesswoman has been ‘crying for days’ over the scandal.
The investigation was sparked after it was revealed senior staff, Gary Starr, Deanne Keetelaar, Anna Bennett and Greg Sutherland, were given the luxury watches after the organisation secured the historic Bank at Post deal.
The deal has allowed Australians to access banking services through Australia Post.
Officials are investigating the possibility of irregular use of taxpayer money by Ms Holgate, board members and other Australia Post executives.
The watch fiasco is not the only line of questioning Ms Holgate is facing after it was revealed Australia Post forked out $34,000 for her to stay at the five-star Grand Hyatt Hotel.
Ms Holgate visited Melbourne between October 2017 and July 2018 to go to the company’s head office.
Ms Holgate, who has a harbourside property in Sydney’s Mosman and a $5million holiday home in Pearl Beach on the NSW’s Central Coast, reportedly had a ‘best room rate’ at the hotel, The Australian reported.
It is understood she was often upgraded to an executive suite when she stayed at the Grand Hyatt because she was a regular guest.
Prices at the Grand Hyatt start at $289 a night for a standard room but can cost up to $2,149 a night in the diplomatic suite.
Ms Holgate, who has a home in one of Sydney’s most affluent suburbs, stayed at the five-star Grand Hyatt Hotel (pictured) between October 2017 and July 2018 when she visited the company’s head office in Melbourne
Australia Post forked out $34,000 for Ms Holgate to stay at the five-star Grand Hyatt Hotel (pictured) for nine months
Australia Post had been granted permission by the Remuneration Tribunal to spend a maximum of $34,500 for Ms Holgate’s accommodation for up to six months.
Ms Holgate replaced Ahmed Fahour as Australia Post chief executive in October 2017. His final take-home pay in 2017 was a staggering $10.8million.
Upon her appointment, Ms Holgate had said she planned to buy a home in East Melbourne.
She later told the Financial Review’s Boss magazine in October 2018 she chose to stay at the hotel as it was ‘like home’.
‘I’m not allowed to tell you the rate but the Grand Hyatt have given me a great rate and actually I could not rent a one-bedroom apartment around here (Melbourne CBD) for that,’ she told the publication.
‘At first I thought I would hate it and everyone said ”Don’t do it!”. But it’s fantastic. I got home at 9.30 last night and I wanted something to eat, and they made me a cheese toastie,’ she said.
Ms Holgate’s future was put in doubt after it was revealed that she spent $20,000 of the public company’s money on Cartier watches to be given to staff members as a bonus
‘I want my laundry done, I call them in the morning and say could you do my laundry today?’
Ms Holgate worked for Blackmores as its chief executive before moving on to Australia Post in 2017.
She replaced Ahmed Fahour as Australia Post chief executive in October 2017. His final take-home pay in 2017 was a staggering $10.8million.
Under Ms Holgate’s tenure, a stream of senior management and executive team quit their respective posts.
Among these are chief financial officer Janelle Hopkins, chief operating officer Bob Black, services executive Philip Dalidakis, international services executive Annette Carey and chief digital officer Andrew Walduck.