The Federal Opposition calls for a full judicial inquiry. The Herald obtains confidential briefing notes from Finance to Ellison showing the Government was alerted to likely fraud on Reith's Telecard in July 1998, more than a year before any investigation was begun. It reveals a 1998 alert from Telstra to Finance on Reith's Telecard, contradicting Fahey's contrary assurances to Parliament. It crushes Howard and Reith claims that they insisted the police be called in, revealing that Ellison was told last September that police action was likely - and much sooner than actually occurred. Howard again refuses to stand Reith down, in spite of the fresh police investigation, saying he still has his full confidence.
Labor demands a judicial inquiry.
The Democrats back Labor's call. Neither Fahey or Ellison will comment, Deputy Opposition Leader Simon Crean accuses Fahey of misleading Parliament.