Rudd continues to deny Grant allegations

Prime Minister Kevin Rudd has continued to deny that he or his office tried to help
Ipswich car dealer John Grant secure a government-backed loan.
Speaking to reporters late on Friday, Mr Rudd disputed evidence given by a Treasury
official to a Senate inquiry that his office had contacted Godwin Grech regarding Mr
Grant, who is a friend and neighbour of the prime minister.
However, Mr Rudd has asked the auditor-general to investigate the matter.
Restating his previous denials to parliament, Mr Rudd said: "As of now, I have no
basis before me which changes that position."
Opposition Leader Malcolm Turnbull earlier said Mr Rudd's job and that of Treasurer
Wayne Swan were on the line following evidence suggesting they'd lied to parliament
and misused taxpayers' resources to help a mate.
Both must quit unless they could justify their actions, Mr Turnbull said.
In dramatic evidence on Friday, Treasury official Godwin Grech told a Senate inquiry
the prime minister's office contacted him regarding Ipswich car dealer John Grant, a
friend and neighbour of Mr Rudd.
Mr Grant, who'd previously given a ute to Mr Rudd for use in his electorate, was
seeking federal government assistance for his struggling car dealership.
Mr Grech, who is in charge of the government's OzCar scheme to help cash-strapped
car dealers finance new and used vehicles amid the global financial crisis, told the
inquiry:
"My understanding (was) the initial contact that I had with respect to John Grant
was from the prime minister's office."
Mr Rudd has said neither he, nor his office, made any representations on Mr Grant's
behalf.
And Treasury officials have said they've been unable to locate any representations
from Mr Rudd's office to Treasury regarding Mr Grant.
Mr Grech was clearly distressed as he told the inquiry that as far as he could
recall, he received an email from Mr Rudd's office about Mr Grant.
"My recollection may be totally false, but my recollection - and that's a big
qualification - but my recollection is that there was a short email from the PMO
(prime minister's office) to me which very simply alerted me to the case of John
Grant, but I don't have the email," he said.
Mr Grech said he understood the "sensitivity and import" of his evidence to the
inquiry, and at one point said no public servant should be placed in the position in
which he found himself.
Mr Turnbull described the evidence as "extraordinary".
"The prime minister and the treasurer abused their offices and taxpayers resources
to seek advantage for one of their mates and then lied about it to the parliament,"
he said.
It was "a shocking abuse of power and a betrayal of public trust".
"If the prime minister and treasurer cannot immediately justify their action ...
they have no choice but to resign," Mr Turnbull told reporters in Melbourne.