Chapter 2
Chronology of relevant events
2.1
In this chapter, the committee sets out the chain of relevant events
as it has been able to establish it through submissions and through material on
the public record.
2.2
When the OzCar scheme was announced in December 2008, Mr Grech was
given responsibility for coordinating the implementation of the scheme under
the supervision of Mr David Martine and Mr Jim Murphy.[1]
This work is described in the report of the Auditor-General, Representations
to the Department of the Treasury in Relation to Motor Dealer Financing
Assistance (Report No. 1 2009–10).
February–May 2009
2.3
On 18 February 2009, Mr Grech sent a list of possible questions to
be asked at Senate estimates about the OzCar scheme, and another matter, to a
member of Mr Turnbull's staff.[2]
Additional estimates hearings were to be held in the week beginning 23
February, having been rescheduled from earlier in the month. According to his
response to the Auditor-General, Mr Grech had been hospitalised on 1 February
and had almost three weeks off work.[3]
He returned to work on 16 February.[4]
It was on 19 February that Mr Grech alleges he received an email from the Prime
Minister's office regarding Ipswich car dealer John Grant.
2.4
In an email to a prominent former staffer to the Howard Government
late in May, Mr Grech sought to be made known to Senator Abetz as a political
sympathiser.[5]
Shortly afterwards, Mr Grech made contact with Senator Abetz's office and
emailed a list of questions for Senate estimates on the OzCar scheme to a member
of Senator Abetz's staff.[6]
June 2009
Senate Estimates hearings and their
aftermath
2.5
The Economics Legislation Committee held Budget estimates hearings
in the week commencing 1 June 2009 and Mr Grech gave evidence on the OzCar
scheme on 4 June. Senator Abetz asked a series of questions, some of which bore
a resemblance to the draft questions emailed by Mr Grech to Senator Abetz's office.[7]
Mr Grech indicated that there had been representations from the Prime
Minister's office and the Treasurer's office in relation to particular dealers.
The provision of details was taken on notice.
2.6
After the estimates hearing and apparently at their request, Mr Grech met with the Treasurer's Chief of Staff, Mr Chris Barrett, and other members of the
Treasurer's staff who queried his evidence about representations made by the offices
of the Treasurer and the Prime Minister. Mr Grech volunteered that he had
received an email from Dr Andrew Charlton, Prime Minister's office, regarding
John Grant on or around 19 February. According to Mr Grech, Mr Barrett said he would check with the Prime Minister's office and get back to Mr Grech, but did not get back to him.[8]
Mr Barrett informed the committee that he specifically asked Mr Grech on this occasion whether he might not have mistaken this approach with another from Dr Charlton in relation to a different dealer, thereby providing Mr Grech with time and
opportunity to clarify the situation. Mr Barrett also informed the committee
that Mr Grech had offered to 'delete – or lie about the existence of – an email
regarding John Grant', but was counselled by Mr Barrett and his colleagues not
to do so.[9]
2.7
Subsequently, Mr Grech searched for the email from Dr Charlton but could not find it and claimed that he thought either he or the Information
Technology (IT) area of the Treasury Department had deleted it. In his
statement published in The Australian on 4 August 2009, Mr Grech described what happened next:
It is at this point that I made an error of judgement. Rather
than preparing a note for file recording the discussion I had with Barrett, including setting out what I thought the Charlton e mail contained, I decided to
create a record of exchange as an e mail that set out what I recollected the
original e mail contained.
Although the e mail was not an 'original', I thought that it
would help having a record in the form that it appeared if or when the original
could be located.
Although the exact words of the e mail record of exchange may
not have been spot on after 4 months, I was confident that the sentiment of the
exchange was accurate – a position that I still believe today.[10]
2.8
On 5 June 2009, Mr Grech sent the recreated email from his Treasury
email account to his personal email account.[11]
Later that day, he emailed Mr Turnbull from his personal email account and
suggested that the OzCar bill be referred to a Senate committee for inquiry as
a way of bringing his evidence to light. Mr Grech stressed the importance of
himself being the only Treasury witness at the inquiry. He also suggested a meeting
with Mr Turnbull 'and perhaps Abetz (no staffers) – to show you the various e
mails I have. This may help you decide how strong you may want to push'.[12]
2.9
Following the estimates hearing, Senator Abetz lodged a Freedom of
Information request with the Treasury Department for copies of any documents
regarding John Grant involving the Treasury Department and any of a number of
other bodies including the offices of the Prime Minister, Treasurer and
Assistant Treasurer, and the Department of the Prime Minister and Cabinet. The
request was received on 10 June and searches conducted primarily by Mr Grech
located no email regarding John Grant from the Prime Minister's office.[13]
The Sydney meeting — 12 June 2009
2.10
Over the next few days Mr Grech and Mr Turnbull communicated by
email and phone and a meeting was arranged in Sydney on 12 June 2009. Mr Grech had asked for the meeting to be 'very private. We must not meet in PH'.[14]
The meeting took place on the afternoon of Friday 12 June in the office of Mrs
Turnbull in Sydney. As well as Mr Grech and Mr Turnbull, Senator Abetz and
his Chief of Staff, Mr Stansfield, were also present. Mr Grech gave an account
of the OzCar situation and representations made on behalf of Mr Grant. He
showed those present a copy of the alleged email from Dr Charlton and notes of
its content were taken. Mr Grech was insistent that no copies be taken and he
took back the circulated copy. He later stressed that he never authorised the
publication, quotation or distribution of the email which was subsequently
revealed to have been fabricated.[15]
Mr Grech also provided Mr Turnbull with a list of possible questions to
be asked of the Prime Minister and Treasurer.[16]
2.11
On the Sunday following the Sydney meeting, Mr Grech again emailed
Mr Turnbull suggesting further strategies for the Senate committee inquiry
into the OzCar bill. For example, he suggested that Ford Credit be called as a
witness before Treasury and noted that if Treasury were scheduled to appear on
Friday afternoon it would likely diminish press coverage. It is not clear
whether he thought the latter was desirable or not. Mr Grech also promised to
supply questions as a guide for Senator Abetz to ask of Ford Credit.[17]
Contact with the journalist, Steve
Lewis
2.12
On Monday 15 June, Mr Grech received a call from the managing
director of Ford Credit who was concerned because a senior journalist had been
asking questions about John Grant. Mr Grech later called Mr Turnbull from his
home. He asserts that it 'was agreed that it would be a good idea if I spoke to
the journalist off the record and on an in confidence basis setting out the
story as I understood it'.[18]
2.13
According to a joint press release issued by Mr Turnbull and Senator Abetz on 4 August 2009, Mr Grech did indeed phone Mr Turnbull but it was stated that it
was Mr Grech who suggested that he speak to the journalist himself. He
requested the journalist's telephone number and Mr Turnbull subsequently
provided it.[19]
2.14
On 16 June, Mr Grech phoned journalist Steve Lewis and spoke for 45
minutes on the OzCar scheme and his allegations of political interference. Mr Grech read out to Mr Lewis the contents of the alleged email from Dr Charlton.[20]
Later that evening, Mr Grech sent Mr Turnbull an email describing his
conversation with Steve Lewis and suggesting that he provide Mr Lewis with some
material for publication on Friday before the hearing that would put the focus
on unanswered questions about the relationship between the Prime Minister, the
Treasurer and John Grant, in Mr Grech's words, 'playing it up a little'.[21]
(The bill had been referred earlier that day by the Senate to the Economics
Legislation Committee for inquiry — see below.)
2.15
Mr Turnbull emailed Mr Grech agreeing with his approach to provide
Mr Lewis with material and Mr Grech subsequently emailed Mr Lewis setting out a
suggested 'teaser' for the coming Friday, including 'key questions' about the
OzCar scheme. Mr Grech gave Steve Lewis permission to use his name in any
article (as having refused to comment) but insisted that it not stray beyond
the 'teaser' and, in particular, 'what I raised with you the other day remains
strictly background, off the record and not for publication'.[22]
Mr Grech later forwarded to Mr Turnbull a copy of what he had sent to Mr Lewis.[23]
2.16
Mr Grech made several calls to Mr Lewis over the period 16–18 June
2009.[24]
The committee has been provided with no evidence that, in any of these calls, Mr Grech relaxed his instructions about reference to the email subsequently revealed to have been
fabricated.
2.17
The annual Federal Parliamentary Press Gallery midwinter ball was
held on the evening of 17 June in the Great Hall of Parliament House. Following
extensive media coverage of an incident at the ball involving a conversation
between Mr Turnbull and Dr Charlton in which the possibility was raised that
there was documentary proof that the Prime Minister had misled Parliament in
respect of John Grant, Mr Grech sent an email to the Treasurer's Chief of
Staff, Mr Chris Barrett, and senior officers in Treasury regarding calls he had
been receiving from Mr Lewis who was seeking information about any instructions
Mr Grech had received from the Treasurer's office regarding John Grant. Mr Grech said that he told Mr Lewis that he would respond to the Senate committee, not the
press. He was subsequently advised by his supervisor, Mr Martine, that it was
normal practice to refer media calls on sensitive issues to the Treasurer's
office.[25]
2.18
On Friday, 19 June 2009, front page articles by Steve Lewis appeared
in the Courier Mail and the Daily Telegraph describing
allegations that the Prime Minister had misled Parliament over assistance
provided to John Grant.[26]
Mr Grech sent an email to his departmental secretary, Dr Henry, his senior
officers, Messrs Martine and Murphy, Mr Barrett and others explaining his contact
with Steve Lewis. He indicated that he had denied to Lewis the existence of any
communication between the Prime Minister's office and Treasury regarding John
Grant. He also referred erroneously to that day's hearings on two occasions as
'estimates'.[27]
OzCar bill referred to Senate
Economics Legislation Committee for inquiry
2.19
On Monday, 15 June 2009, the first sitting day after the Sydney
meeting, Senator Abetz gave notice of a motion to refer the Car Dealership
Financing Guarantee Appropriation Bill 2009 to the Economics Legislation
Committee for inquiry and report by 23 June and 'in undertaking its inquiry,
the committee hear evidence from relevant bodies and individuals, including the
Department of Treasury, about the operation and management of the proposed
OzCar scheme'.[28]
The motion was agreed to without debate the following day. [29]
2.20
With a reporting date on the Tuesday of the following sitting week,
the last sitting week before the winter adjournment, the committee scheduled a
hearing for Friday, 19 June. Witnesses from the Motor Trades Association of
Australia, Ford Credit and the Department of the Treasury were invited to
appear.[30]
2.21
In his email to Mr Turnbull on 5 June 2009 suggesting the inquiry, Mr Grech advised that it was 'important that any inquiry involve only me
from Treasury'. [31]
No reason was given for this claim, and Mr Grech was to be disappointed in his
aspiration. As he subsequently told Mr Turnbull when informing him about the
material he had sent to Steve Lewis, ‘Swan’s office told me tonight that whilst
they want me to appear on Friday – I must be accompanied by my bosses (probably
David Martine and/or Jim Murphy). Chris Barrett has instructed that I say
nothing or very little’ (emphasis in original).[32]
Mr Grech then suggested strategies to deal with the presence of his
supervisors. This email was dated 17 June 2009 and Mr Barrett informed the committee that he had no contact with Mr Grech on the evening of 17 June 2009.[33]
2.22
On the evening of 18 June 2009, Mr Murphy, Mr Martine and Mr Grech met to discuss Treasury's appearance before the Economics Legislation Committee the
following day. Also that evening, Mr Grech called Mr Barrett who he said had
not got back to him after the post-estimates hearing meeting on 4 June.
According to Mr Grech, Mr Barrett suggested that Mr Grech had confused John Grant with someone else in referring to an email from Dr Charlton.[34]
Mr Barrett's advice to the committee was that this conversation had occurred
on 4 June 2009 after the estimates hearing. Of the conversation on 18 June, Mr Barrett said:
He told me he was certain he had received an email from
Andrew Charlton of the Prime Minister's office, but that if he was pushed at
the Senate Committee for a "yes" or "no" answer, he would
lie. Assuming by this that Mr Grech would deny the existence of the email, I
said in response: "my view is you have to tell the truth and let the cards
fall where they may".[35]
2.23
On the morning of the hearing, Mr Grech also alleges that he
received a message to call Mr Murphy in Sydney urgently. Mr Grech alleges that Mr
Murphy said 'if you are asked any questions in the Senate this afternoon about
John Grant and the Prime Minister or the PMO you should simply say that you've
confused the Grant call with some other case' and 'It is very important that
you do not make any trouble'.[36]
This version of events is disputed by Mr Murphy who stated that the phone call
on the morning of the hearing did not deal in any substantive way with the
question of Mr Grech's evidence to the committee.[37]
Initial searches for the email
2.24
Searches for the alleged email from Dr Charlton to Mr Grech ostensibly began when Treasury received Senator Abetz's Freedom of Information request
on 10 June (see above, paragraph 2.9). These searches were carried out
primarily by Mr Grech. No such email was found.
2.25
Extensive reporting of an incident at the Press Gallery ball between
Mr Turnbull and Dr Charlton suggested that such an email may indeed exist. On
the evening following the ball, and after discussion between Treasury and the Treasurer's
office, searches were conducted of Treasury email logs for any email from Dr
Charlton to Mr Grech concerning John Grant. None was found.[38]
2.26
It was subsequently stated by the Prime Minister that 'exhaustive
searches' had been conducted of Dr Charlton's computer and email systems and no
such email had been found. In any case, Dr Charlton denied having sent such an
email.[39]
2.27
Early on the morning of the hearing, Mr Martine requested Treasury
IT to broaden its searches to look for any emails sent by Dr Charlton to Mr
Grech up to the end of March 2009.
2.28
Later that morning, various Treasury staff met to consider the
results of the IT searches. IT staff revealed that there had been a problem
with the back-up email log on 20 February which meant that there may be a gap
in Treasury's records. Subsequent analysis, however, concluded that the lack of
external email logs on what turned out to be a weekend did not compromise the
integrity of the data in relation to emails sent and received during this
period.[40]
The committee hearing
2.29
The Economics Legislation Committee held its hearing on the Car
Dealership Financing Guarantee Appropriation Bill 2009 on the afternoon of Friday, 19 June 2009. The Hansard record of the hearing, which is included in the volumes
of documents presented with this report, speaks for itself, but some excerpts
of the hearing are set out in the following paragraphs. Witnesses from Ford
Credit and the Motor Trades Association of Australia gave evidence, followed by
officers of the Department of the Treasury, Mr David Martine and Mr Godwin Grech. Two hours had been set aside by the committee to hear Treasury's evidence. Mr Martine commenced with an opening statement that alluded to media reports suggesting the
existence of correspondence between the Prime Minister's office and Treasury
regarding John Grant. Mr Martine informed the committee that available records
had been searched 'to the best of our ability' but the correspondence had not
been found. Mr Martine also referred to representations that had been made in
respect of Mr Grant by the Treasurer's office and noted that this
correspondence had been tabled earlier in the hearing.[41]
2.30
The hearing became quite heated as the subject of the alleged email
was explored. Mr Martine reiterated on many occasions the outcome of the search
for the alleged correspondence. He answered many questions on Mr Grech's behalf in relation to the alleged correspondence, which Senator Abetz insisted that Mr Grech answer. There were heated exchanges between committee members and the chair, and Mr Grech appeared to become increasingly distressed when questioned about the alleged correspondence.
At one point, despite the chair's intervention to protect him, Mr Grech insisted on explaining his position to the committee, conveying his distress at seeing
the articles published by Steve Lewis that morning and the natural assumption
his colleagues would make that he was the source. His statement that he was in
a position that no public servant should find him or her self in was subsequently
broadcast repeatedly on news and current affairs programs and aroused concern
in many quarters for his welfare.[42]
2.31
During the hearing, Mr Grech indicated that he believed he had seen
an email from the Prime Minister's office regarding John Grant but qualified
this with a statement that his 'recollection may well be totally false or
faulty'.[43]
He also answered questions from Senator Cameron about his contact with the
journalist, Steve Lewis, and asserted that contact had been initiated by Mr Lewis.
2.32
Additional television cameras were present in the hearing room from
the commencement of the hearing and appear to have increased in number during Mr Grech's evidence, joined by still cameras, all operating very close to the committee and
witness tables.[44]
After the hearing had been adjourned, the cameras moved in on Mr Grech and Mr Martine and continued to film. The final frames of the official coverage of the
hearing show the chair noticing this behaviour and beginning to speak to the
camera operators. Subsequent footage shown on news and current affairs programs
indicates that the chair's intervention was ignored, as cameras crowded
Mr Grech and Mr Martine and followed them out of the hearing room, into a
lift, down corridors and out through the ministerial entrance of Parliament
House. Footage in the lift shows a strong light being shone on Mr Grech's face.
After the hearing — the events of
Friday evening
2.33
After the hearing, Mr Grech and Mr Martine returned to work. In
light of his ordeal before the committee and his pursuit by the media, Treasury
officers checked on Mr Grech's welfare and arranged contact with a counsellor
though the department's employee assistance program. Senior Treasury officers,
including the Secretary, Dr Henry, offered comfort and support to Mr Grech. In particular, Mr Martine checked on Mr Grech through the evening and remained in
contact with him by email and phone over the weekend, offering practical
support in view of the media presence at Mr Grech's home. [45]
2.34
Meanwhile, in the Department of the Prime Minister and Cabinet, the
Secretary, Mr Terry Moran, aware of Mr Grech's evidence that afternoon that he believed
he had seen a short email from the Prime Minister's office regarding John Grant, asked his IT staff to undertake a thorough search of the email records of the
department and the Prime Minister's office. The results were known by around 6.45 pm. They indicated no evidence of an email from Dr Charlton to Mr Grech in the period 16 to 22 February that met Mr Grech's description of the alleged email. Mr Moran was confident of the search results because of relatively recent changes to the
department's IT system and informed the Prime Minister accordingly.[46]
2.35
Mr Moran suggested to the Prime Minister that the Auditor-General
should investigate and report on the matter.
2.36
Evening news and current affairs programs carried extensive reports
of Mr Grech's evidence and the gravity of its implications for the Prime
Minister and Treasurer.
2.37
Around 7.30 pm, the Prime Minister held a press conference and announced
that no email matching the description given by Mr Grech had been found. He
referred to allegations made that evening by Steve Lewis who claimed to be in
possession of an email from Dr Charlton to Mr Grech (referred to as 'the public
servant') but stated that extensive searches by his office and the Departments
of the Prime Minister and Cabinet, and Treasury, had found no such email. Dr Charlton had also denied sending any such email. In answering a journalist's question, the
Prime Minister concluded that the email was false. The Prime Minister also
announced that he had decided to refer the matter to the Auditor-General
because questions of integrity had been raised.[47]
2.38
Earlier that evening, Steve Lewis had advised the Prime Minister's
press secretary by email that he was proposing to publish details of the
alleged email from Dr Charlton to Mr Grech in the next day's Daily Telegraph.
He later asked questions about it at the press conference where the Prime
Minister expressed the view that the email must be false.[48]
Saturday 20 June 2009
2.39
Details of the email were duly published on Saturday 20 June and
there was extensive media reporting of Mr Grech's evidence and its
implications.
2.40
Overnight, Mr Moran had reflected on the results of the various
searches for the email and the denials of the Prime Minister and Dr Charlton of any knowledge of such a communication. It occurred to him that the email had been
fabricated and that Mr Grech may have been one of the victims of that
fabrication. Further, if that were the case, an inquiry by the Auditor-General
may not be 'the appropriate method of inquiry into the matter'.[49]
2.41
Between 10 and 11 am Mr Moran phoned Mr Roger Wilkins, Secretary,
Attorney-General's Department, and raised his concern that the email was fabricated.
He asked Mr Wilkins to examine whether, if that were the case, any offence might
have been committed and, if so, to take the appropriate action.[50]
2.42
Mr Wilkins then had a conversation with the Attorney-General who
agreed that it would be desirable to obtain preliminary legal advice on
possible criminal offences that may have been committed if the email were found
to be a fabrication. Around 11 am, he asked a senior officer of the department,
Mr Geoff McDonald, to prepare preliminary legal advice which was provided to Mr Wilkins around midday.[51]
2.43
Between 12.30 and 12.45 pm Mr Wilkins, Mr McDonald and another
departmental officer, Ms Sarah Chidgey, discussed the process for referring
matters to the AFP. Between 1 and 2 pm, Ms Chidgey drafted a letter of referral
and cleared it with Mr McDonald and then with Mr Wilkins. During this time, Mr Wilkins spoke again to the Attorney-General advising him that referral of the matter to the AFP was the 'best course of action'. He also spoke to the then AFP Commissioner, Mr Mick Keelty, who indicated that the AFP would investigate.[52]
2.44
Ms Chidgey finalised and despatched the letter of referral by email
after she had ascertained the appropriate person in the AFP to send it to. The
letter was received by Commander Justine Saunders at 2.19 pm. Commander
Saunders subsequently contacted Ms Chidgey who provided what further
information she had about the allegations.[53]
2.45
The Prime Minister held a press conference during the afternoon at
which he reiterated actions taken to search for the alleged email, and
concluded that it was false. He announced that the Secretary of the
Attorney-General's Department had referred the matter to the AFP.[54]
2.46
Meanwhile, on that Saturday morning, Dr Henry was also concerned
about the provenance of the alleged email and the source of the material
published by Steve Lewis. He spoke to Mr Chris Barrett and Mr Jim Chalmers from the Treasurer's office and Mr Martine and Mr Di Giorgio of his department. At
approximately 1.40 pm he phoned Ms Deirdre Gerathy (General Manager, Corporate
Services Group) and asked her to arrange a search of Mr Grech's emails for any
sent to Steve Lewis in the preceding week.[55]
2.47
Ms Gerathy arranged for Treasury IT to search Mr Grech's email
account and to give her access to check his inbox and sent items. This check
revealed items of concern which Ms Gerathy then discussed with Dr Henry. These items raised the possibility of wrongdoing by Mr Grech and it was agreed that
the matter would be discussed with Treasury's internal lawyer on the following
Monday.[56]
2.48
Mr Martine, unaware of these developments, including the material
discovered on Mr Grech's computer, but having discussed the situation with Ms Gerathy, spoke to Mr Grech on Sunday afternoon and conveyed the advice that it would be best
for Mr Grech to take the following week off.[57]
2.49
Around 7 pm that evening, Dr Henry learned of the Prime Minister's
announcement of the AFP inquiry. He thereupon phoned Commissioner Keelty to request that the AFP investigation also include emails in Treasury's IT
system. Dr Henry then informed Ms Gerathy of his request to the AFP. Ms Gerathy was subsequently contacted by the AFP. She outlined what searches had been done,
described the suspicious emails that had been found and arranged to meet AFP officers at the Treasury building the following morning.[58]
The AFP inquiry — search warrant
obtained and executed
2.50
Between 10 am and 12 noon on Sunday 21 June 2009, AFP officers attended the Treasury building in Parkes and were given the results of preliminary
searches of Mr Grech's email account. After the AFP officers and Ms Gerathy left the building, Treasury IT officers continued working on the recovered deleted
files and found the false email whereupon AFP officers returned to Treasury and
were given hard copies.[59]
Access to Mr Grech's Treasury IT account was stopped.[60]
2.51
That evening, Commander Saunders obtained from Ms Chidgey a copy of Mr McDonald's advice on possible criminal offences and Commissioner Keelty phoned Dr Henry to inform him that the AFP had sufficient material to
support an application for a warrant to search Mr Grech's home.[61]
2.52
The AFP prepared an application for a warrant to search Mr Grech's home based on advice from Treasury IT that the false email had been sent from Mr Grech's Treasury account to his personal account. However, the information supplied to obtain
the warrant also included reference to Mr Grech's committee evidence. A warrant
was issued at 9.30 pm by a magistrate.[62]
2.53
On Monday 22 June 2009, The Australian and Daily Telegraph
published intrusive articles about Mr Grech's health and medical history, the
appearance of his home and the opinions of his neighbours.
2.54
At 8 am, AFP officers arrived at Mr Grech's home to execute the
warrant but were unable to raise him. After consulting Treasury officers about Mr Grech's possible whereabouts and wellbeing, and arrangements for welfare assistance, the AFP officers gained access to Mr Grech's home. Mr Grech was present and the AFP officers searched his computer and, at his request, interviewed him. Before departing, the AFP officers activated Mr Grech's welfare support arrangements, liaised with Treasury's employee
assistance provider and contacted the ACT Mental Health Assessment and
Treatment Team (MHCATT). Officers of MHCATT arrived at Mr Grech's home and informed
the AFP that their further assistance would not be required. AFP officers left the premises, having earlier removed certain items.[63]
2.55
After the execution of the warrant, the AFP issued a media release stating,
in the following terms, that the email had been fabricated:
Having regard to the public interest in this matter, the AFP can confirm in relation to the investigation of matters referred to it by the
Attorney-General's Department on Saturday 20 June 2009, that a preliminary
forensic investigation of computers located at a premises in Calwell and at the
offices of the Department of the Treasury has been undertaken.
Preliminary results of those forensic examinations indicate
that the e-mail referred to at the centre of this investigation has been created
by a person or persons other than the purported author of the e-mail.
A 42-year-old Calwell man has been interviewed by the AFP in relation to this matter and it will be alleged that the interview is consistent with
preliminary forensic advice.
As the investigation is continuing, the AFP does not intend to make any further comment at this stage.[64]
2.56
Later that afternoon, the AFP assisted MHCATT officers to gain
access to Mr Grech's home again for the purpose of ensuring his wellbeing.[65]
2.57
A second search warrant was executed by the AFP on 22 July 2009 and further items seized.[66]
Response of the Department of the
Treasury
2.58
According to Treasury's submissions, Mr Grech's wellbeing was also a
focus of Treasury officers on Monday 22 June 2009. Treasury's General Manager,
Human Resources, Ms Henderson, met with Dr Henry to discuss Mr Grech's leave arrangements, his access to the department's employee assistance provider and
to arrange an update from the AFP regarding Mr Grech's welfare. Ms Henderson had subsequent discussions with Mr Martine, Ms Gerathy and the Deputy Public
Service Commissioner, Ms McGregor, who had raised concerns with Dr Henry about Mr Grech's wellbeing. Updates were subsequently received from the AFP.[67]
2.59
Later in the afternoon, a senior Treasury officer, Mr David Parker,
contacted MHCATT to inform them about other serious matters concerning Mr Grech
that were yet to be revealed in public. These were the matters that would
subsequently become the subject of a code of conduct inquiry. Ms McGregor contacted Mr Grech and passed on to Treasury officers the information that he was
considering admitting himself to hospital. [68]
2.60
That evening, according to Dr Henry, Mr Grech phoned Dr Henry and told him what had happened after the estimates hearing on 4 June and how he had
decided to 'reproduce' the email he claimed to have received from Dr Charlton. He also told Dr Henry that he had read out the email to Steve Lewis on the phone on
16 June.[69]
Mr Grech's account of his recreation of the email is in his statement to The
Australian on 4 August 2009, set out in paragraph 2.7.
2.61
Mr Grech was subsequently admitted to a mental health facility later
that evening.[70]
2.62
Treasury officers continued to engage in various consultations and
inquiries regarding Mr Grech's welfare and wellbeing.[71]
July–August 2009
Code of conduct inquiry by the
Department of the Treasury
2.63
In view of the material found on Mr Grech's computer, Treasury
considered taking action against Mr Grech for breaching the Australian Public
Service Code of Conduct. As part of its consideration, Treasury sought legal
advice on the scope of parliamentary privilege to ensure that any action it
took against Mr Grech did not trespass on the privileges of the Senate.[72]
The material found on Mr Grech's computer included numerous communications with
people connected to the Liberal Party,[73]
and documents which showed Mr Grech to be behaving in a politically partisan
fashion against the Government and in support of the Opposition.
2.64
On 17 July 2009, Treasury's Acting Secretary, Dr Gruen, wrote to Mr Grech's lawyers indicating that he intended to consider suspending Mr Grech on the basis that
he may have breached the code of conduct. Dr Gruen provided particulars of the
alleged breaches and copies of the material Dr Gruen was intending to consider.
Before despatching this letter, Treasury officers contacted MHCATT to inform
them of the impending correspondence.[74]
2.65
Dr Gruen wrote again to Mr Grech's lawyers on 22 July 2009 indicating that he intended to delay considering suspending Mr Grech in view of a
further personal leave application from Mr Grech and his continued
hospitalisation.[75]
This decision was reversed, however, following the events of 4 August 2009 (described below). Dr Gruen then indicated he intended to proceed with the suspension
of Mr Grech and Dr Ian Watt was appointed to determine whether Mr Grech had breached the code of conduct.[76]
Dr Gruen signed an instrument of suspension, suspending Mr Grech from duties without remuneration, on 21 August 2009.[77]
4 August 2009 — three significant publications
2.66
The Auditor-General's report on Representations to the Department
of the Treasury in Relation to Motor Dealer Financing Assistance was
published on 4 August by presentation to the Senate out of sitting. The
report contained a 35 page response by Mr Grech to the matters covered.
2.67
The publication of the report had been anticipated by the
publication of a statement by Mr Grech in The Australian that morning,
together with an interview giving his version of events and the reasons for his
actions. In his statement, Mr Grech made much of the claim that he had not
authorised anyone to publish details of the fake email and that it had been
published without his permission or agreement.
2.68
It was these two publications that prompted Dr Gruen to reconsider
his decision to delay considering Mr Grech's suspension.
2.69
The third publication was a joint media release by Mr Turnbull and Senator Abetz at a press conference at which copies of three documents provided
by Mr Grech were distributed (2 lists of questions and Mr Grech's email to Mr Turnbull of 5 June).[78]
In their joint press release, Mr Turnbull and Senator Abetz gave an account of
their dealings with Mr Grech and stressed that it was Mr Grech who initiated
the contact. They stated that they had accepted and acted in good faith on the
information he provided. The statement disputed Mr Grech's reasons for acting
as he did and drew attention to Opposition statements supporting the passage of
the bill, made before Mr Grech's approach to Senator Abetz's office. They also
disputed Mr Grech's accusation against the Opposition including the suggestion
that Mr Grech was pressured to make statements concerning Mr Grant.
11 August 2009 — an apology
2.70
At the first meeting of the Senate after the publication of the Auditor-General's
report, Senator Abetz made the following statement:
A lot has been said and written about my involvement in what
has now become known as the OzCar affair. I have already publicly apologised,
but I wanted to take this very first opportunity in the Senate to repeat that
apology and in addition apologise for any perceived reflection on the Senate. I
also want to briefly deal with the three assertions made against me: that I
pressured a witness; that I misled a Senate hearing; and that I scripted a
witness’s evidence. All three assertions are wrong.
First, as the joint statement I made with the Leader of the
Opposition on 4 August makes clear, the witness volunteered his information.
When the witness approached us we listened because he was a person with direct
knowledge of the matters in question.
The second assertion is that I misled the Senate on 19 June
by suggesting that a journalist had told me about the now known to be fake
email and its contents. The simple fact is that a journalist did tell me this.
He said he had been contacted by the witness, who had shared his information
including the contents of the email. The journalist then shared that
information with me. As the joint statement made clear, the witness had
previously shown me the email. Both statements are true; they are not mutually
exclusive. Having received information from two separate sources it is quite
appropriate to rely solely or partially on just one of those sources without
exposing the other.
He denied allegations that he had pressured a witness,
misled a Senate committee hearing or scripted a witness's evidence.[79]
7 October 2009
2.71
It was reported that Mr Grech had left the public service.[80]
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