Michelle Guthrie was paid $730\,000 to drop court action against ABC

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Michelle Guthrie was paid $730,000 to drop court action against ABC

The ABC paid former managing director Michelle Guthrie $730,000 to drop a court action over her dismissal from the public broadcaster late last year.

ABC acting managing director David Anderson was forced to reveal the figure in a Senate committee hearing on Wednesday after initially declaring the details of the settlement would be kept confidential.

Ms Guthrie and the ABC reached the resolution last week after Ms Guthrie filed an adverse action in the Federal Court over claims her dismissal was in retaliation for raising complaints against former chair Justin Milne.

The payment of $730,000 is in addition to a $911,000 payment she received when she was fired from the role.

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Under questioning from Jonathon Duniam, Liberal chair of the environment and communications committee, Mr Anderson was reluctant to answer the question publicly because of the settlement's confidentiality requirements.

Senator Duniam — supported by Labor senator Kristina Keneally and Greens senator Sarah Hanson-Younng — said the question would need to be answered publicly.

Witnesses are protected from legal action by parliamentary privilege when giving evidence to a parliamentary committee. The Senate also has the power to force a statutory body like the ABC to provide information.

Mr Anderson said the decision to reach a settlement was based on consideration of "what is in the best interest of the corporation". This included the potential costs of a full trial and the distraction that such a process would be.

He said one of the estimates he had for the cost of a full trial was $1 million while another was $2 million.

He said "the parties had started a long way apart" in their negotiations. Ms Guthrie had initially sought reinstatement to her position or payment for the remaining two-and-a-half years of her contract for the $900,000-a-year job.

"There was toing and froing to arrive at the number that I'm about to give you. The gross amount of that settlement claim is $730,000," Mr Anderson said.

Approached by The Sydney Morning Herald and The Age in Canberra on Wednesday, Ms Guthrie declined to comment.

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