Prime Minister Kevin Rudd has directed the Auditor-General to investigate the OzCar affair after a senior bureaucrat's explosive evidence that one of Mr Rudd's mates received special treatment.
In an appearance yesterday before a Senate committee, Treasury official Godwin Grech said it was clear that Brisbane car dealer John Grant ''wasn't your average constituent'' as he had a relationship with ''at least the Treasurer''.
The bureaucrat recalled receiving an email from the Prime Minister's Office regarding Mr Grant who was seeking help with financing.
Last night, Mr Rudd said exhaustive searches of the Government computer systems had failed to turn up this email allegedly sent by the Prime Minister's economic adviser, Dr Andrew Charlton, to Mr Grech.
Mr Rudd concluded the email was ''false'' and he stood by his earlier statements in Parliament on the matter.
''One, ... I have been advised that neither I nor my office have ever spoke to Mr Grant in relation to OzCar; and two, neither I nor my office ... have ever made representations on his behalf; and three, I've not been aware of any representations on his behalf made by anyone in the Government,'' Mr Rudd said.
Opposition Leader Malcolm Turnbull said Mr Grech's evidence suggested Mr Rudd had repeatedly misled Parliament and demonstrated ''beyond doubt'' that Treasurer Wayne Swan had done so.
''The Prime Minister and Treasurer have used their offices and taxpayers' resources to seek advantage for one of their mates, and then lied about it to the Parliament,'' Mr Turnbull said.
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