Kevin Rudd might think that momentum has swung back his way in the Utegate scandal with the email implicating him and his office looking almost certainly like a fake.

For the PM to have referred himself and his office to the Auditor-General, and to have gone one further and called in the AFP, are the actions of a man who is confident that the continuing sweeps of his email system will not throw up any nasty surprises.

But the more the ALP goes on about the fake email, the more obvious it becomes that it’s the only email the Government wants to talk about - because the others are so damning of Treasurer Wayne Swan, whose conduct has conveniently not been included in the terms of reference for the Auditor-General’s investigation.

As the debate swirls about the veracity or otherwise of the email implicating the PM, or the string of communication involving Wayne Swan, it’s worth returning to the original source of this scandal - namely the bizarre relationship between Kevin Rudd, Wayne Swan, and some bloke with a Kia dealership in Pauline Hanson’s old political heartland in Ipswich to Brisbane’s south.

I like utes as much as the next man but have never owned one. If I were Prime Minister or Treasurer, or intended to hold either post, I don’t think I’d imperil my designs on either position by turning a relationship with a friend and neighbour into a formal political relationship, by accepting an old, clapped-out, pre-loved ute for use as an electoral vehicle, or in Mr Swan’s case by travelling some 45km from my own seat to get my hands on one.

Even though the gift was disclosed in Mr Rudd’s case, and despite the fact that Mr Swan has also been candid about the purchase of his vehicle, the conduct of both men in accessing this kind of low-level special benefit is exactly the kind of stuff which makes people hate politicians so much.

At last count, when she was selling out of the domestic arm of the business, Kevin Rudd’s wife Therese Rein was worth an estimated $127 million. If the PM wanted a ute so badly - and felt that his salary as Opposition Leader wasn’t enough to cover the cost, which it was - maybe he could have bought a ute himself. In fact he could have bought 10 utes, probably with the change out of the ashtray in his family car, and still not noticed the cost on his family bank balance.

Both Rudd and Swan turned their relationship with Mr Grant into the political relationship which it now is, and which is threatening the government’s stability and, specifically, Mr Swan’s grip on treasury.

The coverage of this affair on Friday was aimed much more squarely and aggressively at Mr Rudd because at that stage it had not emerged that the email implicating him was probably a fake.

That extracts him from the argument about misleading Parliament. If there are no legitimate emails to Mr Rudd, he has not misled.

That leaves us with Mr Swan, who is is more trouble than Detroit on the car question.

Mr Swan was massively unconvincing on television this morning as to his receipt of emails concerning Mr Grant’s eligibility for federal assistance through the OzCar financing scheme.

It doesn’t matter whether Mr Swan received emails at home via his fax machine as to whether Mr Grant would get assistance or not. What matters is that he received the emails at all. It wouldn’t matter if he was at is office, at home, at the pub, or on Mars - what matters is that Mr Grant is a mate of his and as a minister of the Crown you don’t help your mates get access or try to get access to public money. You don’t even risk creating the perception that that is what you are doing. And Wayne Swan has gone well beyond merely creating the perception.

To this end the fake email is almost now a red herring in this debate. It still matters for a few reasons - unless the Auditor-General inquiry proves otherwise, and Rudd’s confidence suggests that it won’t, it does remove the suggestion that Kevin Rudd has misled.  But it doesn’t matter for Malcolm Turnbull, because Turnbull wasn’t shopping the fake email about, meaning that the calls for his resignation are absurd.

All that really matters is the string of genuine emails involving Wayne Swan and his office and John Grant, which don’t so much suggest as scream that Treasury boffin Godwin Grech was bang-on in his estimates testimony on Friday that this Ipswich car dealer is not just another constituent.

37 comments

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    • Martin says:

      06:07pm | 21/06/09

      my god. FINALLY bit of sense.

      You are spot on about the fake email being a red herring. the prime minister must have a very low opinion of the Australian people to think that turnbull is the one that needs to resign. neither turnbull OR the liberals have ever said that they had it in their possession, rudd is trying to cause a distraction, like i said, he thinks very little of the public.

      there are more questions that need to be answered, firstly, why was the PMs personal phone used to take a photo of a PRIVATE ( and might I add, rather non threatening) conversation between turnbull and charlton? that doesn’t seem right. first internet censorship, now the PMs taking photos now?

      and why was Godwin Grech constantly interrupted from answering the question at the senate estimate? the labor senators kept trying to shut down the question. anybody who watched that hearing cannot possibly walk away not thinking something is amiss. it was the most anti democratic display I have seen in a while.


      wayne swan, must resign immediately, and kevin rudd needs to explain himself. not turnbull.

      brilliant article

    • John says:

      06:17pm | 21/06/09

      It seems that government documents are sent to an insecure fax.  Wayne Swan’s kids and their friends could easily see them in the IN tray:
      http://www.treasurer.gov.au/DisplayDocs.aspx?doc=transcripts/2009/098.htm&pageID=004&min=wms&Year;=&DocType;=
      Doorstop Interview
      Electorate Office
      20 June 2009
      SUBJECTS: OzCar
      TREASURER:
      On a rare night or day in Brisbane, the fact is that fax is clogged, and on some occasions – this is a matter of some contention in my house – it’s out of paper, and I have to go through the routine of sorting all that out

    • Jeff from Meroo says:

      06:40pm | 21/06/09

      You’re not calling for Rudd or Swan to resign just yet are you?  Cause I remember a certain editor of a certain paper that endorsed these bozos just days before the last election and I’m just hanging to throw that back at you.  which at this rate may be as early as sometime this week.  Just make sure your retraction headlines have the same size typeset as they did for your endorsement.

      Love your work though and missed you at the Swans last night.  Keep up the great work, the Punch is awesome!

    • Julie says:

      06:46pm | 21/06/09

      Channlel 10 news was an eye opener. It seems 100’s of car dealers were helped out equally.

      News Ltd made such a fuss over this so called email by publishing it. Now it seems it is irrelevent that it is not serving news Ltd and the liberal party agenda. I can’t believe the hypocrisy of the Liberals. They gave Mr rain man, a friend and donor of Turnbull a grant of millions, faked emails in SA and posters in NSW,  lied about Children overboard etc, and they are full of themselves re the Westminster system.

      Mr Grant got nothing from the government except some correspondence.

      I have had assistance from my local MP to help out our small business. It was done via local Mp to minister as in the case of Mr Grant. Does this mean that anyone with any affiliation with the government of the day, be it political donations or party affiliation is now disadvantaged?

    • Charlie says:

      06:49pm | 21/06/09

      Please everyone forget the alleged email. It’s becoming quite common for News Ltd “journalists” and editors to base front page allegations on dodgy evidence. Pauline Hanson photos anyone?

    • Julie Coker-Godson says:

      07:51pm | 21/06/09

      This all sounds so machiavellian!  Thank you, though, for the explanation as I would have been completely lost in it all.

    • Jane says:

      08:00pm | 21/06/09

      The onus is on Rudd and Swan to show they did not mis-lead Parliament. THAT is the issue. So far all evidence ( despite any PMO email) shows that they in fact HAVE mis-led…that they lied and there WAS preferential treatment given to Grant as a ‘special’ case. Both Grech and Cohen collaborate that fact….and Grech verifies he was ‘instructed’ to ‘look after’ Grant…whether or not an email can now be found or not.
      Both Rudd and Swan are desperate liars and their cover-ups and pathetic deflections to divert attention from the reality of this is insulting to all Australians. Time to go fools. Adios Amigos.

    • iansand says:

      08:20pm | 21/06/09

      Read your own site to see how underwhelming this issue is to real people.  It is (yet another) mutual masturbation session with the press gallery and the pollies.

    • willy says:

      08:29pm | 21/06/09

      remember the QLD is a state where corrupt sir bjork peterson presided over as premier, and where pauline hanson committed electoral fraud. you just can’t trust those red-neck converts

    • Jovial Monk says:

      08:30pm | 21/06/09

      It seems clear Malcolm Turnbull has no basis for the smears he has been making in Parlt. This article I was referred to means the punch can get stuffed from now on, I won’t be coming back. Gutter journalism.

    • sammy says:

      08:37pm | 21/06/09

      news journos a buch of murdoch liberal running dogs. hanson photo? you idiots

    • phil says:

      08:43pm | 21/06/09

      spot on julie i also saw the ten report but this bozo penbathy thinks that facts and stories are the same penbathy have a look at the ten news admit your a liberal stooge and lastly calling rudd a dork have a good look in the mirror my friend witty coments sharp tongue dont make a good reporter i think kerry obrien is safe

    • Jonathan says:

      09:08pm | 21/06/09

      I rather suspect a fake email would be created by a labour stooge and sent to the Liberals to get them embarrased.  Similar to the Heffernan thing where faked comcar records such him in.

    • Sandra says:

      09:10pm | 21/06/09

      No one is reporting about the Senate testimony Friday by Greg Cohen, MD of Ford Credit. If you read Cohen’s testimony and his subsequent statements to the media he very clearly says that in the meeting between Ford Credit and Mr. Grech in February 2009 that Mr. Grech asked Ford Credit to assist John Grant AND told them that John Grant was a friend of the Prime Minister. 

      This testimony from Mr. Cohen related to a meeting that took place
      almost 4 months before the Senate hearing corroborates Mr. Grech’s recollection that there was some form of representation by the Prime Minister regarding John Grant’s dealership.  Otherwise, why would Mr. Grech make reference to the Prime Minister and the PM’s relationship with John Grant in this meeting with Ford Credit?

      The media needs to stop the focus on the missing email. It is, as you say, a red herring and a deliberate and amateur attempt by Rudd to obfuscate and distract. The media and the public needs to focus on the facts that are already on the table as they are enough to implicate Swan and justify further investigation of Rudd.

      As for the AG and AFP inquiries, it is a travesty of democracy that the terms of reference for these inquiries is being set by the very person/government accused of wrongdoing.  It is almost certain these inquiries will be insufficient. Turnbull and the media should be calling for a Royal Commission to look at all the evidence unobstructed and come to a view on the various charges.

    • Sandra says:

      09:41pm | 21/06/09

      Before publishing an opinion and giving weight to more half-baked theories, people should sit down and watch the full Senate hearing on OzCar that took place last Friday.  The motor industry head Delaney testified at the hearing on Friday prior to Grech. During his testimony Delaney tried on the same line that there were “hundreds” of dealers who were being directly helped by Treasury with financing issues.  When Grech was subsequently asked about this testimony by Delaney he said it was untrue and that (i) there was only a handful of dealers who were being assisted by Treasury (not “hundreds”, but that (ii) John Grant Motors received special attention unlike any other dealer and was clearly “not your average constituent”.  There is of course also the testimony from Greg Cohen, MD of Ford Credit confirming John Grant Motors was the only dealer they were asked by Treasury to assist.

      From his testimony and performance on Friday and from his statements today, Delaney seems to be an attention whore and too willing to get involved with the inquiry.  Grech is the individual within Treasury responsible for OzCar and any representations with respect to any individual dealer came to him. He knows how many representations were made to him and how many car dealers got “special attention” at the level of updates being sent to Ken Henry and Wayne Swan.  Read all the testimony and then have a Royal Commission investigate and get a full statement from Grech who was prevented from giving a full testimony at the Senate hearing.

    • Bernadette says:

      11:32pm | 21/06/09

      This is where you nail it David ;

      ” the conduct of both men in accessing this kind of low-level special benefit is exactly the kind of stuff which makes people hate politicians so much.”

      To top it all we made The Times in the UK today over this!

      When was the last time they featured anything about Australia which wasn’t cricket and crikey?
      http://www.timesonline.co.uk/tol/news/world/article6546625.ece

      It makes me really question the judgement of our leaders that they would be prepared to comprmise themselves over something like this.

      I wouldn’t want to be a fall guy bureaucrat for all the utes in Queensland.

      GO Godwin!

    • Caroline says:

      01:56am | 22/06/09

      Someone ought to give Mr Grech immunity and witness protection on this one.  It’s obvious the guy is scared shitless - as would anyone is his place!

    • John K says:

      10:07am | 22/06/09

      I think you’re taking this line in an effort to save face after jumping on the fake email bandwagon too early in your article of Friday, “PM’s car trouble more than just a minor bingle”. Here’s a quote from that:

      “The Grant affair is in a different category as it involves the disbursement of public money, suggestions of favours for friends, and as of today’s estimates hearings, the undeniable proof that Mr Rudd has either cocked up or cooked up his line of defence in the Parliament.”

      If it is “undeniable proof”, why are you now denying it?

    • Geoff from Ourimbah says:

      10:28am | 22/06/09

      Mr Rudd’s record: Lied about family kicked out of sharecropper’s house; Lied about TV’s Anzac day affair; Lied about New York Strip Joint affair, lied about threatening air force meal provider; etc and also headed the shredding of the Heiner affair documents.
      He seems so confident that the email doesn’t exist. Could it have been electronically shredded?

    • im says:

      10:37am | 22/06/09

      Godwin is the victim in this. Wayne and Kevin will continue to act like they are coated in teflon.

    • Beverley Diplock says:

      10:40am | 22/06/09

      Having watched a Public Servant gagged during a Senate Inquiry, I am more concerned for the mental health and wellbeing, of any Public Servant bought before an such hearing.

    • bob says:

      11:47am | 22/06/09

      Today’s Australian has an article saying that Mr Grech is not a well man. It has a comment from a “spokesperson” at Canberra Hospital, that Mr Grech had been admitted in Feb and March. Since when have hospitals been allowed to divulge details of patients?

    • steve says:

      12:08pm | 22/06/09

      This is totally how deceptive Rudd is, he use to run around in queensland in this ute which was new to start with may i add? to let people think he was a poor man trying to get into parliament,probly didn’t tell anyone his wife was worth $$$$ hundreds of millions of $$$ and with alll this money why didn’t he buy the ute?I think you will find this car dealer donated more than a few dollars to Rudd and his campaigns…But Rudd has denied they have a friendship>???

    • sally says:

      12:26pm | 22/06/09

      Can we just go back to the bit where Therese Rein sells her business for 127 million dollars - a business that was built on contracts for the placement of government jobs!!! hmmm conflict of interest goes waaay back with the ruddster - long before he was PM he has been rorting the system. You know what they say about old habits…..

    • Makka says:

      12:46pm | 22/06/09

      Some people have very short memories. Have you already forgotten Howard lying through his teeth about children overboard, where he was contradicted by not one, but 2 public servants?Or how about Alexander Downer’s sudden attack of amnesia during the AWB affair? The Liberal party has absolutely no credibility in any argument involving Ministerial probity. Turnbull has made patently false accusations against Rudd with no evidence to back it and he should resign immediately.

    • dan says:

      12:52pm | 22/06/09

      sorry, why cant an MP get emails or faxes from a constituent?

    • KazLaker says:

      01:18pm | 22/06/09

      I honestly can’t believe this is even an issue… Assistance was made available for struggling car dealers, so a struggling dealer got in contact with the Government to apply for this assistance… Was he meant to do it telepathicly??... Yes perhaps in the future the government should refrain from assisting any businesses that are in financial trouble, and just let the economy go down the toilet.

    • melanie says:

      02:18pm | 22/06/09

      Sneaky labour at it again well while you are at it how about looking into the the green scam. Wong still has not delivered the proof after 2 weeks to senator fielding. Just more scams as usual. everyone knows you can’t change the weather with taxes and that co2 is does not have one thing to do with eather cycles, charges of fraud should apply.

    • leo says:

      02:24pm | 22/06/09

      Rudd assured us that will happen to Mr Grech for implicating his boss, but that doesn’t stop the character assassination - “Mr Grech a sick man” - from proceeding apace.  My $10 says Grech ends up popping himself a few months from now.

      The hallmark of a great leader is that when things go wrong you have the personal integrity to have someoneelse fall on your sword for you.

    • RT says:

      03:05pm | 22/06/09

      This non-scandal should not be tagged utegate but fizzergate. Someone set News Ltd up with some dodgy evidence. The usual gaggle of right wing columnists has tried to make a lot of play out of this and it’s not playing except to the ratbags who read their blogs. Unless more evidence comes out and soon the government will emerge without a scratch.

    • Jodie says:

      03:24pm | 22/06/09

      I’d like to point out that any major employer, including a major Brisbane car dealership is ‘more than just another constituent’ for any MP.

      Facts are that Grant asked for assistance from the Treasurer’s office, who had established a scheme to provide assistance to businesses such as his. The treasurer’s office passed the request to the relevant part of Treasury asking that his eligibility be assessed and contact made with Grant to advise him. Process was followed, Grant was not eligible and he started making other arrangements. Nothing at all improper about that.

      Let’s not forget that Grant did not actually receive one cent of Government money!

    • McDazz says:

      04:17pm | 22/06/09

      Considering information that has come to light today (from numerous people involved in this), it looks as though Turnbulls political career will be over.

      Let’s not forget that Turnbull was carrying on like a pork chop and bullying Labor staffers before Grech and the “fake” email surfaced.

      Turnbull also maintained that he had “proof” all along in regards to this - but now he is downplaying it, and stating that he never had any proof, nor any emails.

      If the email does indeed turn out to be fake, and Swans actions are entirely legitimate (and it looks as though they are), then Turnbull needs to answer questions of his own - especially his relationship to Grech.

      I suspect the police will be paying close attention to Turnbulls office - and rightly so.

    • Jeff Moore says:

      06:01pm | 22/06/09

      The fake email claim is the ‘red herring’ being weaved by the PM and Treasurer. They’ve harped on it so many times as to make redundant its validity. Its as if they want to desperately believe it themselves. The facts being these;Grech had the balls to tell a senate enquiry about an email. We came to know Ford Credit had pressure put on them to call John Grant mobile or else no half billion. John Grant is Rudd’s neighbour and labour supporter but Bernie Ripoll MP came all the way from Ipswich to raise his case. Swan came 45ks to buy a car from Grant in ipswich. Swan claims he is concerned about Australian jobs in correctly allocating the Ozcar scheme to recipients. This country loves its used car salesman so much that Kevin Rudd even has a free Ute to prove it! The high ideals of our political system is reduced to a shameful pettifoggery. Its a sad day for our beloved nation. My gut feeling is that its not all good. There is more at stake here than just glib rhetoric in perliament. Make us proud to belong to this great country Mr Politician.

    • Andy says:

      08:24pm | 22/06/09

      This is the high point of the argument for the government. The email will be proved to be fake but won’t be tied to either party. Who ever has written it will have covered their tracks enough not to be identified. But, despite Mr Rudd trying to pass off the whole case against swan as one fake email there is much more to it! there is also much certified correspondence of Mr Swans involment in this dealing. and just like the ABC and the previous opposition harped on about “children overboard” for months after the event, this will burden the government.

    • Ron B. says:

      09:02pm | 22/06/09

      Today,a point was made in the parliament that the government has in fact ordered the Federal Police to question persons employed at the treasury( not Godwin Gretch as it happens) and that it is not the Prime-ministers place to order such actions. So the question was raised,is the act of a democratic government or one of as police state where information is hidden from the public.
      We know now that Rudd has in fact used his mates position to leverage Ford finance ,in other words it was stated in Parliament ,give our mate a hand or we don’t give you(Ford Finance) the $500,000,000 you want.
      Nasty is the only word to describe such behaviour .

    • alan says:

      04:26am | 23/08/09

      We have to laugh when the right to the action of Kevin Rudd in calling in the AFP is questioned in parliament.  Is there to be no redress when someone uses subterfuge to attack the PM and the treasurer, based on a fabrication.  Do we need a royal commission into the underhand dealings of the Liberal Party in their flagrant scramble to try to regain power?

    • alan says:

      04:31am | 23/08/09

      Now Turnbull knows how Joel Fitzgibbon felt when he was walking away from his job.

 

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