Former Australia Post CEO Christine Holgate has levelled extraordinary accusations against her chairman and the Prime Minister at a Senate inquiry.

Scott Morrison insisted Ms Holgate stand down during an investigation of the $3000 Cartier watches she awarded to senior employees as bonuses.

Ms Holgate has now accused the Prime Minister of “humiliating” her, while chairman Lucio Di Bartolomeo “fabricated” evidence against her.

Jim Wilson confronted shadow communications minister Michelle Rowland about Labor’s stance on Ms Holgate’s position.

Ms Rowland denied leader Anthony Albanese called for Ms Holgate to be stood down, and instead commending her hindsight in acknowledging the gifted watches were a mistake.

“Ms Holgate says one of the reasons that she was so unpopular was because she didn’t agree with a plan to slash 5000 postie jobs, to cut services, and to cut … around 200 post offices.

“She wanted to grow Australia Post … whereas the government was more consumed with cost-cutting.

“No-one forced the Prime Minister to take the position he did on the floor of the parliament.”

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Communications Minister Paul Fletcher was not available when invited to comment.