Helloworld Travel CEO emphatically denies telling Carstensen that Joe Hockey “owes me”.
Helloworld Travel has issued a formal ASX statement rebutting explosive claims made by former senior executive, Russell Carstensen, aired before a Senate Estimates committee yesterday.
Carstensen, who abruptly resigned from his role as head of QBT and Air Tickets in May 2018, claimed to have been asked by Burnes to meet with Australian Ambassador to the USA and former Federal Treasurer, Joe Hockey, in Washington in April 2017. The meeting was arranged at short notice but Carstensen said this was possible because Burnes verbally told him “Hockey owes me”.
Hockey is a long-time friend of Liberal Party treasurer Burnes, and a significant shareholder in Helloworld. Subsequent to the meeting DFAT ran a tender process for the provision of travel services to the Washington embassy. Carstensen’s statement says he was advised later that “people” in DFAT were “uncomfortable that Mr Hockey met me and that he was a shareholder in Helloworld”.
The Helloworld Travel statement from Burnes counters Carstensen’s claims, insisting “I did not organise any meetings between Russell Carstensen and Joe Hockey”.
Burnes said he and Hockey did not discuss the meeting in Washington “at any time after it took place,” and that it was appropriately disclosed to the Department of Finance at the time.
“I emphatically deny ever having told Mr Carstensen that Mr Hockey ‘owes me’ or any words to that effect. Joe Hockey and I have been close friends for 20 years and it would be ridiculous to suggest I would say or imply he owes me anything,” Burnes said.
The Helloworld Travel CEO also pointed out he had never received special treatment from Liberal Governments. The Whole of Government Accommodation Management contract awarded to AOT was won under Labor in 2012. In 2015 AOT tendered for the Whole of Government Travel Management contract – under a federal Coalition Government – and was unsuccessful. “AOT was a competitor of Helloworld’s when both these contracts were awarded and the two companies later merged in 2016,” Burnes noted.
The controversy is now emerging as a key issue for the upcoming Federal election, with Labor leader Bill Shorten telling Parliament yesterday: “Australians do care about integrity. That is why if we are elected, Helloworld will be the first item on the National Integrity Commission that we will set up”. Prime Minister Scott Morrison defended Burnes and Hockey in question time, saying neither had had any involvement in the DFAT tender.
More information in today’s issue of Travel Daily.