Commodore Bruce Kafer will be back running the Australian Defence Force Academy this week, even though his boss, Defence Minister Stephen Smith, still says his handling of last year's Skype scandal was ''stupid'' and ''insensitive''.
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Mr Smith has refused to express confidence in Commodore Kafer as ADFA commandant despite an independent inquiry exonerating the senior officer.
The minister announced Commodore Kafer's reinstatement during a 70-minute press conference held at Parliament House yesterday.
''The Kirkham Inquiry found no legal basis for action against Commodore Kafer and any resumption of his duties is a matter for his chain of command,'' he said.
Figures in defence are disappointed by Mr Smith's refusal to express confidence in Commodore Kafer, his failure to say sorry and his decision to block the release of the long-awaited Kirkham Inquiry report.
Australia Defence Force Association executive director Neil James said, ''It is a pity the minister chose not to apologise, not just for Kafer but in the interests of natural justice and helping restore confidence in the minister by Defence''.
The report remains top secret for legal reasons.
''After consideration of policy and legal advice, the inquiry report will not be published - including in a redacted form,'' Mr Smith said.
Defence has racked up bills of more than $13 million so far for the raft of inquiries and reviews ordered by the minister in the wake of the Skype affair.
That incident, which is still before the courts, involved allegations a female cadet - ''Kate'' - was filmed without her consent while having consensual sex with a male colleague. It was then allegedly broadcast to another room where six other cadets were watching.
While Mr Smith said he had confidence in senior military commanders who had confidence in Commodore Kafer, he would not give the reinstatement his blessing. Commodore Kafer's return to duties came with ''risks'' and he was only agreeing to the action following legal advice.
Chief of Defence Force, General David Hurley, said the prospect of Commodore Kafer suing to get his job back had not been an issue.
''He [Commodore Kafer] is not being given his job back because I am afraid of being sued,'' he said.
Mr Smith had pushed for Commodore Kafer to be sacked after learning he had proceeded with two separate disciplinary charges against ''Kate'' - who left ADFA last April and is now at an ADF base in Queensland - before the Skype matter had been dealt with. ''Kate'' had pleaded guilty to having consumed alcohol and being absent without leave and agreed to have the matters dealt with.
''It is an error of judgement and wrong to allow the character of a potential innocent victim of an alleged serious sexual abuse to go into play at the time that that alleged sex abuse is being contemplated,'' Mr Smith said.
The minister was the first person to publicly reveal ''Kate'' had been charged with AWOL and drinking offences.
''I thought it very important to draw to public attention that at 11 o'clock this morning the young woman concerned was subject to a hearing under the Defence Discipline Act,'' Mr Smith said on April 6, 2011.
''When I was informed of this by the CDF this afternoon - mid-afternoon - my response was swift and clear. It seems to me in the scale of complete insensitivity to complete stupidity that this matter was allowed to proceed.''
He later said Commodore Kafer's decision to proceed with the hearing was ''inappropriate, insensitive and wrong'' and ''almost certainly faulty in law''.
Andrew Kirkham QC disagreed. ''Neither the commandant nor the deputy commandant made an error of judgment in their decisions to commence and conclude the disciplinary proceedings,'' he said.
