Secret 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 on their return to Australia.
Tristan Freeman and Daniela Marsilli were kept in Vietnam for six months in 2010 while the 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 that Vietnam's feared 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 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 most important 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 prepared for questions such as whether Qantas had to "provide any commercial concessions to allow this outcome".
The response was to be: "The Australian government has focused on the consular welfare of the two Australians and is pleased that the two are now on their way to Australia. Qantas and its Vietnamese partner, the State Capital Investment Commission (SCIC), are maintaining their investment in the airline and have issued a statement to that effect."
This newspaper previously 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 freed 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 returned with formal advice 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 scheduled 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 the 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…
Two senior Qantas executives – Tristan Freeman and Daniela Marsilli – were kept in Vietnam for about six months in 2010 while Vietnamese authorities investigated losses at Jetstar Pacific. The case highlights the operational and reputational risks that can arise from international joint ventures, which everyday investors may want to monitor when assessing a company’s overseas exposure.
Qantas holds a 30% stake in Jetstar Pacific, a Vietnamese budget airline. The majority shareholder is the State Capital Investment Commission (SCIC), and under Vietnamese law the SCIC’s losses prompted a formal investigation that involved interviews with the two Qantas executives.
The investigation related to a $31 million loss by Jetstar Pacific on a fuel‑hedging contract. That loss, borne by the SCIC as the majority shareholder in the joint venture, triggered the formal inquiry by Vietnamese authorities.
Reporting in the article says the two executives were freed after the airline agreed to a secret “commercial package” with the SCIC, reached days before their release in June 2010. Diplomatic cables also show officials prepared for questions about whether Qantas provided any commercial concessions.
The cables, stamped “consular media talking points,” showed that diplomats and Qantas were focused on managing media interest and public perceptions. They documented interviews by Vietnam’s Ministry of Public Security and indicated the Department of Foreign Affairs and Trade prepared responses for likely media questions.
The Department of Foreign Affairs and Trade was forced by the Information Commissioner to release detailed information to Fairfax Media under freedom‑of‑information laws. The cables had previously been heavily censored when first obtained in late 2010.
Qantas said the executives had been “through a lot” and the airline wanted to protect their privacy on return. Statements prepared for diplomats also noted that Qantas and the SCIC were maintaining their investment in Jetstar Pacific.
The episode underscores several investor‑relevant points: the risks of operating in foreign jurisdictions (including regulatory and legal risk), the potential for sensitive commercial arrangements in joint ventures, and the importance of corporate transparency and reputation management when problems arise abroad.
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