... So that You may be kept informed

Fed: OzCar scandal set to explode in parliament

21 Jun 2009 6:02 PM

The scandal over whether a car dealer friend of KEVIN RUDD received preferential treatment from government officials is set to explode in Parliament tomorrow.

Treasurer WAYNE SWAN's been handed a potential lifeline .. with a key motor industry representative saying the Brisbane dealer hasn't received any different treatment to other dealers over the OzCar scheme.

MALCOLM TURNBULL's now distanced himself from the existence of an email .. purporting to show the PM's office had directed a public servant to help Brisbane car dealer JOHN GRANT gain dealer finance.

The opposition leader's instead calling for Mr SWAN's resignation based on emails suggesting he'd directed Treasury officials to ensure they dealt with Mr GRANT's application for help.

But the prime minister now says Mr TURNBULL has 24 hours to prove in parliament the existence of the email implicating Mr RUDD .. or resign.

The government has referred the matter of the email to the Australian Federal Police for investigation.

Legislation setting up OzCar is yet to pass parliament and is due to be debated in the Senate on Tuesday.