Turnbull blames Grech over OzCar affair

Opposition Leader Malcolm Turnbull says he was duped by Treasury official Godwin
Grech into believing Prime Minister Kevin Rudd had improperly used his office to
help a friend in the OzCar affair.
Mr Turnbull confessed to reporters on Tuesday he wished he had never met Mr Grech
after relying on previous dealings by Liberal MPs with the public servant to presume
his information was credible.
"The reality is we have been misled," Mr Turnbull said.
Mr Grech, who is a voluntary patient at a Canberra psychiatric clinic, admitted in a
statement published on Tuesday that he had faked the email at the centre of the
OzCar affair.
Mr Turnbull had called for the resignations of Mr Rudd and Treasurer Wayne Swan on
the basis of evidence Mr Grech gave to a Senate inquiry on June 19 implying improper
representations had been made to help car dealer John Grant get access to OzCar.
A report of a six-week investigation by Commonwealth Auditor-General Ian McPhee,
released on Tuesday, found no evidence of impropriety in relation to the OzCar
scheme designed to help car dealers get finance in the global financial crisis.
Mr Grech was the Treasury official in charge of setting up OzCar and had complained
to the auditor-general that he was working 75 to 85-hour weeks dealing with finance
providers and car dealers seeking finance.
The report was critical of Treasury's management of the scheme and the mention to
Ford Credit, a potential provider of finance, that Ipswich car dealer Mr Grant was
seeking finance and was a friend of the prime minister.
The government has flagged it will move for an investigation by the Senate
privileges committee when parliament resumes next week, into evidence Mr Grech gave
to a Senate inquiry on June 4 and June 19.
In a letter to the Clerk of the Senate, government leader in the Senate Chris Evans
said the committee should investigate whether Mr Grech's evidence was in contempt of
the Senate which could include coaching or scripting of a witness.
It also intends to pursue its claim, first made in June, that Mr Turnbull is
dishonest and is unfit to serve as prime minister.
Financial Services Minister Chris Bowen said Mr Turnbull must admit his position is
untenable and resign.
"He should have taken some responsibility and done the decent thing and handed his
resignation in," Mr Bowen said.
In his statement, Mr Grech claimed that in a meeting with Mr Turnbull and Liberal
Senate deputy leader Senator Eric Abetz on June 12, he had been placed "under great
pressure" to show them a record of the email and to speak to a journalist.
He also said he had been motivated by his fear that the OzCar bill could be blocked
by the opposition even though it had announced in May it would not oppose the bill.
But Mr Turnbull denied there was any pressure on Mr Grech and said it was the public
servant who had suggested the June 12 meeting where he provided them with two lists
of questions the opposition could ask of Mr Rudd and Mr Swan in parliament.
Mr Turnbull released an email dated June 5 sent to him by Mr Grech in which the
public servant discussed how he really believed "there is meat in this one".
"Mr Grech spoke freely and naturally and neither Senator Abetz nor myself had any
reason to doubt the truth of what this senior and well-respected public servant had
to say," Mr Turnbull said.
Mr Turnbull said he had noted down the content of the email shown to them by Mr Grech.
"It appeared to have been received by Mr Grech at his Treasury account at 2.01pm on
the 19th of February," Mr Turnbull said.
It purported to be from Andrew Charlton, senior economics adviser to Mr Rudd, to Mr
Grech seeking assistance for Mr Grant.
"He vouched for it himself, he vouched for the accuracy of his own statement," Mr
Turnbull said.
Mr McPhee's 116-page report said there was no evidence that either Mr Rudd or his
office had played any role in any of the other 11 representations received by
Treasury, including those in relation to Mr Grant.
"Treasury was aware that the dealer was acquainted with the prime minister, but
there is no evidence that the prime minister was aware of the representation, or
that the treasurer or his office applied any pressure on Treasury to give this
dealer more or better assistance than others," the report said.
It also said there were "serious questions" concerning whether Mr Grech had breached
the Australian Public Service code of conduct in disclosing confidential information
to parties outside of the government.