SYDNEY (AFP) — Australian opposition leader Malcolm Turnbull has come under growing pressure to quit after a fake email destroyed his claims that Prime Minister Kevin Rudd used his influence to help a friend.
Turnbull admitted Rudd was off the hook over the 'Utegate' affair but denied any blame over the email forgery, which saw his case against the prime minister backfire badly.
"It was not created or composed by us," Turnbull told public radio. "If it is a fake, as is apparently the case, it was a fake that was created in the Treasury.
"Now how on earth can I be responsible for a fake that is created in (Treasurer Wayne) Swan's department?"
Turnbull admitted Rudd now had no need to answer claims that he helped a car dealer friend who lent him a utility vehicle -- or 'ute' -- for use in his constituency.
But he refused to apologise, insisting he had acted "reasonably and responsibly" and instead kept up his attacks on Treasurer Swan, who he said "unquestionably misled the parliament."
"The evidence against Mr. Swan is overwhelming, we must pursue this issue right to the end," Turnbull said.
Police on Monday said the email, which purportedly showed a member of Rudd's office asking a senior official to help the car dealer, had been concocted by someone in the Treasury.
The prime minister, who had come under unprecedented pressure from Turnbull, rounded on the opposition leader, urging him to explain his role in the fiasco and demanding his resignation.
"Mr. Turnbull's integrity I believe has been fundamentally undermined and it is important therefore that Mr. Turnbull at least today do the right thing and resign," Rudd told reporters.
Finance Minister Lindsay Tanner said Turnbull, a millionaire former banker who has led the opposition Liberal Party since last September, had gambled and lost.
"He has over-reached. He's shown a classic character flaw, a judgement flaw and he should resign," Tanner said.
"He was convinced he had a smoking gun and now it's blown up in his face."
Turnbull was forced to deny that he passed on the email to media, while shadow treasurer Joe Hockey admitted he once employed the Treasury official at the centre of the row -- and also tried to call him on Saturday.
However, they sought to deflect criticism by promising to pursue Swan "relentlessly" over claims he helped car dealers seeking government financial crisis loans.
"The treasurer should come clean with the Australian people and immediately release all correspondence to back up his claims," Hockey said.
The dramatic events represent a significant victory for Rudd, who has been riding high in the polls since ending John Howard's 11-year premiership in late 2007.
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