Cables reveal Qantas duo's ordeal
The documents, stamped "consular media talking points", also reveal that Qantas was "keen to manage media interest downwards" about its two top-ranked executives upon their return to Australia.
Tristan Freeman and Daniela Marsilli were kept in Vietnam for six months in late 2009 and 2010 while secret police investigated losses at Jetstar Pacific. Qantas has a 30 per cent stake in the Vietnamese budget airline.
The cables about the highly sensitive case reveal Vietnam's secret police "conducted a series of interviews separately" with Mr Freeman in the capital, Hanoi, and Ho Chi Minh City. The Ministry of Public Security also interviewed Ms Marsilli once in late December 2009.
The Department of Foreign Affairs and Trade has been forced by the Information Commissioner to release detailed information it once deemed "irrelevant" to Fairfax Media. The cables were originally obtained by this newspaper under freedom-of-information laws in late 2010 but were heavily censored.
The newly released documents show that top of mind for the department were questions it was likely to face from the media about whether Qantas had to reach a deal to free its two executives.
Diplomats were prepped for questions such as whether Qantas had to "provide any commercial concessions to allow this outcome".
The response did not answer the question but was to be: "The Australian government has focused on the consular welfare of the two Australians and are pleased that the two are now on their way to Australia.
"Qantas and its Vietnamese partner, the State Capital Investment Commission, are maintaining their investment in the airline and have issued a statement to that effect."
Fairfax Media has revealed that the two executives were freed after the airline agreed to a secret "commercial package" with the SCIC, the investment arm of Vietnam's government. The deal was reached just days before the pair were allowed to return to Australia in June 2010.
Six months earlier, the two executives were stopped from returning to Australia for Christmas. Immigration officials confiscated the passport of Mr Freeman, then the chief financial officer of Jetstar Pacific. It was later returned with formal advice that he could not leave Vietnam.
He was told that Vietnamese police wanted to interview him about Jetstar Pacific's operations.
Ms Marsilli, then Jetstar Pacific's chief operating officer, was to leave the same day - December 19, 2009. But the cables show she decided "not to attempt to leave after receiving advice that Vietnamese authorities also wanted to interview her".
The pair were targeted as part of a "formal investigation" after Jetstar Pacific lost $31 million in a fuel hedging contract. Under Vietnamese law, the loss incurred by the SCIC - the majority shareholder in the Jetstar Pacific joint venture with Qantas - had to be investigated.
Qantas said on Friday that its two executives had been "through a lot so, for obvious reasons, we were keen to protect their privacy when they returned to Australia".
Frequently Asked Questions about this Article…
Secret diplomatic cables show Tristan Freeman and Daniela Marsilli were held in Vietnam for about six months across late 2009 and 2010 while Vietnam's secret police investigated losses at Jetstar Pacific. Their passports were at times confiscated, they were separately interviewed in Hanoi and Ho Chi Minh City, and were only allowed to return to Australia after a resolution in June 2010.
At the time, Tristan Freeman was Jetstar Pacific's chief financial officer and Daniela Marsilli was the airline's chief operating officer. Both were senior Qantas-linked executives seconded to the Vietnam joint venture during the period of the investigation.
The investigation followed a $31 million fuel hedging loss at Jetstar Pacific. Because the State Capital Investment Commission (SCIC) was the majority shareholder and suffered the loss, Vietnamese law required a formal investigation into the matter.
Qantas holds a 30% stake in Jetstar Pacific, which operated as a joint venture with Vietnam's State Capital Investment Commission (SCIC).
Fairfax Media reported that the two executives were freed after the airline agreed to a secret “commercial package” with the SCIC. The deal was reportedly reached just days before the pair were allowed to return to Australia in June 2010.
The cables, labelled “consular media talking points,” show the Department of Foreign Affairs and Trade prepared responses to likely media questions and focused on managing public perceptions. They were released after the Information Commissioner forced DFAT to provide detailed information previously deemed irrelevant to Fairfax Media.
Qantas said the two executives had "been through a lot" and that the company was keen to protect their privacy when they returned. Qantas and its Vietnamese partner, the SCIC, also said they were maintaining their investment in the airline and issued a statement to that effect.
The case illustrates cross‑border joint‑venture risks for investors, including regulatory and legal scrutiny in partner jurisdictions, potential commercial or political bargaining to resolve disputes, and reputational impacts when senior executives are caught up in investigations. These points are underscored by the $31 million fuel hedging loss and the subsequent diplomatic and commercial activity described in the cables.
Call 1300 880 160
Start a chat
Schedule a call
