Australia Post Chief Executive Christine Holgate has been asked to stand aside after the government launched an investigation into extraordinary spending.

Ms Holgate today told a parliamentary hearing senior employees were given luxury $3000 Cartier watches as a reward for completing a multi-million-dollar project, which were not paid for with taxpayer funds.

The revelation follows recent reports Australia Post hired a $3000-a-day reputation consultant.

Postal services union CEPU’s National Secretary Greg Rayner told Jim Wilson the watch purchases show “absolute disregard” for staff and customers.

He believes the CEO’s position is untenable.

“They’ve got their staff going out there, trying to get everything done and they can’t do it … and they’re worried about bloody watches and … some pot plants.

“Their bread and butter operations … [are] in absolute turmoil out there, and they’ve fallen asleep at the wheel.”

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