Australia Post chairman, Lucio Di Bartolomeo said former CEO Christine Holgate is not owed an apology by Australia Post, but believes she has been "badly treated".
"Christine Holgate has been treated abysmally but I believe the board and management did the right thing by her," Mr Di Bartolomeo said.
Ms Holgate resigned as CEO of the postal service in November, in the wake of criticism over Cartier watches she had given to executives, as a reward for closing a lucrative deal.
READ MORE: Australia Post names Woolworths executive Paul Graham as new CEO
Mr Di Bartolomeo appeared before a Senate committee, where he described the purchase of the luxury watches as an "error of judgement" by an otherwise "highly effective CEO".
He told the hearing Communications Minister Paul Fletcher wanted the Australia Post board to stand Ms Holgate aside, while an investigation was carried out.
Earlier in the day Ms Holgate gave explosive evidence, accusing Mr Di Bartolomeo of having her stood down unlawfully under the public direction of Prime Minister Scott Morrison.
Ms Holgate claimed she was "bullied out of her job".
"I lost my job, a job that I loved, because I was humiliated by our prime minister for committing no offence and then bullied by my chairman," she told the committee.
Ms Holgate said Mr Di Bartolomeo should resign.
When asked if he should remain in his role, Mr Di Bartolmeo said he's not going anywhere.
"I will not be resigning. I certainly don't think it would help. I think it would further hinder the organisation going forward," he said.
Ms Holgate earlier told the inquiry about the impact of her firing and Mr Morrison's involvement.
"The simple truth is I was bullied out of my job. I was humiliated and driven to despair," Ms Holgate said.
"I was thrown under the bus of the chairman of Australia Post, to curry favour with his political masters."
Ms Holgate left her position after political fallout following revelations she spent $20,000 on rewarding four executives with Cartier watches.
She said she has never spoken to Mr Morrison, and believes she was treated differently when he called for her sacking in parliament.
"I was humiliated by our Prime Minister for committing no offence," Ms Holgate said.
On October 22 last year, Mr Morrison vehemently called for Ms Holgate to stand aside.
"We are the shareholders of Australia Post on behalf of the Australian people… she has been instructed to stand aside, if she doesn't wish to do that, she can go," he said during Question Time.
READ MORE: Australia Post CEO's lawyers claim 'no reason' she should stand down
Today Ms Holgate said she believes the board responded to Mr Morrison's calls.
"I don't know why the Prime Minister took the action he did. I'm putting to you today I was unlawfully stood down and my contract got repudiated," Ms Holgate said.
"I've only ever asked for respect and I have never been allowed it.
"So, maybe I answer that slightly differently.
"I don't know why the Prime Minister did what he did.
"But I was unlawfully stood down, I believe, because he instructed it to do so."
Ms Holgate said she was "not just hung, but run over by a bus and reversed again".
READ MORE: True cost of Australia Post watches revealed
Ms Holgate said media articles that commented on the cost of her personal watch were a gendered attack that would not have happened to a man in her position.
"I think it would be fair to say I've never seen a media article comment about a male politician's watch and yet I was depicted as a prostitute for making those comments, humiliated," Ms Holgate said.
"I have never seen any male public servant depicted in that way.
"So do I believe it's partially a gender issue? You're absolutely right I do.
"But do I believe the real problem here is bullying and harassment and abuse of power?
"You're absolutely right I do."
READ MORE: Dutton backs PM over 'unacceptable' luxury watch gifts
She said she did not agree to stand down from her position, as was widely publicised by the chairman of the organisation Lucio Di Bartolomeo.
"I have said consistently since October 22 that I have done nothing wrong. I have not agreed to stand down," Ms Holgate said.
"I have provided comprehensive written proof to support these statements to Australia Post and its chairman, have provided evidence of any kind.
"They have not. They have produced lies."
Ms Holgate said she was within her rights to award four executives cash bonuses of $150,000 each for brokering a deal that saved Australia Post millions.
Instead, she awarded them Cartier watches worth approximately $5000 each and was consequently sacked after political fallout due to the "optics" of the gifts.
"I could have… awarded those four people up to $150,000 each as a bonus. I chose not to," Ms Holgate said.
"I chose to give them a watch.
"It was a moment of pride for them and those gifts, rewards, were a moment of celebration in the organisation and they were signed off by the CFO at the time."
Ms Holgate said the watches were audited and fringe benefits tax was calculated.
The hearing also heard Ms Holgate may still legally be the CEO of Australia Post.
Ms Holgate told senators by law, her contract required a deed of release to be signed by her as well as the chairman of the board.
When asked if she was still the CEO of Australia Post, she noted her LinkedIn remains unchanged.
"I'm totally not sure but what I do know is that I have signed no deed of release. They unlawfully stood me down," Ms Holgate said.
Ms Holgate said she was suicidal following the fallout of the watch revelations and had written to several MPs to organise a meeting.
"I spoke (to) Senator (Simon) Birmingham after I sent him that email. He suggested I forward that email to Minister (Paul) Fletcher and he offered to organise a meeting to help me get resolution," Ms Holgate said.
"And I think if you read that note and I apologise in advance, that it is rambling and it is rambling because I was seriously ill, I was on temazepam. I was suicidal."
Readers seeking support can contact Lifeline on 13 11 14, beyond blue on 1300 22 4636, Suicide Call Back Service on 1300 659 467.
