Kevin Rudd has rejected Coalition allegations of impropriety and repeated that there has been no representations from him or his office regarding donor John Grant, in a press conference in Canberra this evening.

Rudd told Parliament two weeks ago that no representations had been made by him or his office. Malcolm Turnbull today demanded Rudd and Treasurer Wayne Swan resign for misleading the Parliament.

It follows a remarkable Senate inquiry this afternoon. In scenes that could have been lifted from a courtroom drama, Treasury official Godwin Grech, who has worked on the OzCar proposal since its inception, stated that he had known Grant was no “normal constituent” when he was asked by Wayne Swan’s office to contact him, and that he had put more effort into dealing with Grant than he had with a car dealer referred by Swan’s office from Nationals MP Kay Hull, although their circumstances were different.

Grech also said he thought, but couldn’t be sure, that the first referral of the matter had been from the Prime Minister’s Office. However, when chief Opposition inquisitor Eric Abetz, surprisingly patient and polite, tried to ask Grech whether it was Prime Ministerial staff member Andrew Charlton (economist and Ozonomics author, who says he was confronted by Malcolm Turnbull about the matter on Wednesday night) who made the representation, he was stymied both by Grech’s manager, David Martine, who insisted on answering the question and saying no contact had been received from Charlton, and Labor senators.

A visibly highly-stressed Grech was eventually asked to answer the question, but deferred to his manager.

Subsequently, News Ltd’s Steve Lewis contacted the Prime Minister’s Office at 4.30 this afternoon to advise News Ltd would tomorrow be publishing an email from Charlton to Grech on 19 February which asked Grech to assist Grant. Rudd has advised that neither PM&C nor Treasury can find any trace of the dispatch or receipt of the email. Grech, too, said he didn’t have any email.

The Prime Minister has also requested that the Auditor-General conduct a full investigation by the end of July.

The John Grant issue has now developed into a mini-crisis for Rudd, who if in the clear himself faces criticism that the Treasurer was over-zealous in looking after Grant.

Subsequently, News Ltd’s Steve Lewis contacted the Prime Minister’s Office at 4.30 this afternoon to advise News Ltd would tomorrow be publishing an email from Charlton to Grech on 19 February which asked Grech to assist Grant. Rudd has advised that neither PM&C nor Treasury can find any trace of the dispatch or receipt of the email. Grech, too, said he didn’t have any email.

The Prime Minister has also requested that the Auditor-General had been requested to conduct a full investigation by the end of July.

The John Grant issue has now developed into a mini-crisis for Rudd, who if in the clear himself faces criticism that the Treasurer was over-zealous in looking after Grant.

The broader context for such criticism is, of course, that all ministers in all governments favour government-linked constituents over those linked to the Opposition and always have. If Swan has encouraged his Department to act vigorously in Grant’s favour, he has done no more than what most ministers have done in the past for favoured constituents.

However, the misleading of Parliament is a different and altogether more serious matter, and, at least in regard to Swan, has some way to play out yet. And Godwin Grech, a diligent and experienced public servant, appears to have been caught up in a scandal simply for doing his job. The Prime Minister tonight guaranteed Grech’s job position was safe, despite making it clear he thought he was very wrong. Not a good position for any public servant to be in.