The ABC has reached a settlement with former managing director Michelle Guthrie, sparing the public broadcaster a court battle over her sacking last year.
Guthrie’s contract was dramatically terminated by the ABC board in September, halfway through her term, sparking a period of tumult for the broadcaster that also resulted in chairman Justin Milne quitting his post.
Late on Friday, about six months after Guthrie filed an unfair dismissal claim, the ABC confirmed the parties had reached an agreement.
“The ABC and its former managing director, Michelle Guthrie, are pleased to announce a resolution to their federal court litigation,” the statement said.
“The details of the resolution will remain confidential. No further public statement will be made regarding the resolution by the ABC or Ms Guthrie.”
After her $900,000-a-year contract was terminated, Guthrie said she was “devastated”, while her lawsuit argued the ABC had no “reason to trigger the termination clause”.
The settlement comes a day after the government appointed the women’s magazine editor and TV personality Ita Buttrose to replace Milne as the new chair of the ABC.
Milne had been forced to quit after he was accused of compromising the ABC’s independence.
A friend of Malcolm Turnbull, he was alleged to have been involved in the decision to oust Guthrie. That prompted a war of words between the two at a Senate inquiry hearing.
In the ensuing dispute, Guthrie accused Milne of inappropriate conduct, which he denied. The former chairman alleged that she had “fabricated” conversations where it was claimed Milne pressured the broadcaster to fire prominent journalists Emma Alberici and Andrew Probyn.
Guthrie, a former lawyer and News Corp executive, was reported to have been unpopular with some outspoken ABC staff, including the Melbourne radio host Jon Faine, who claimed she did not act as a “champion” for the broadcaster.
But Guthrie said after her sacking that the issues claimed to have led to the decision were never directly raised with her.
Asked on Thursday if her role was to rebuild trust in the ABC following Guthrie’s departure, Buttrose said she believed the public had not lost confidence in the broadcaster.
“The Michelle Guthrie matter is something else again,” she said.
“It’s a management issue. It’s being dealt with.”
The broadcaster is yet to appoint Guthrie’s replacement.
A spokesman for Guthrie declined to comment further on Friday night.
