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The former head of Cycling NZ told Olivia Podmore that he saw "no tangible value" in pursuing disciplinary action against those alleged to have harmed her.
The revelation came on day three of an inquest into the death of the Rio Olympian. The 24-year-old died in a suspected suicide in August 2021 - the day after the conclusion of the Tokyo Olympics.
The Coroner's Court in Hamilton on Wednesday heard from former Cycling NZ chief executive Andrew Matheson, who led the organisation during a critical period of 2014-2018 when serious conduct and cultural issues emerged in the high performance programme.
The issues were explored in detail in an independent inquiry into Cycling NZ in 2018, carried out by Mike Heron.
After producing his final written report, which detailed a litany of cultural and leadership failures and athlete welfare concerns, Heron wrote a separate, confidential letter to Matheson outlining issues that may "give rise to further action".
Among the additional issues outlined by Heron were allegations Podmore was bullied by two of her teammates in July 2016.
In response to the bullying allegations raised by Heron, Matheson wrote a letter to Podmore in December 2018 advising her he did not believe it necessary to take any further action.
"I made the decision that there was no tangible value in treating this matter as a disciplinary matter," Matheson wrote.
He went on to add that he had instructed head sprint coach Rene Wolff to work with Podmore and the other athletes involved to discuss the issues and "draw a line under the alleged incident".
"Rene has informed me he has commenced this process, therefore on behalf of Cycling NZ, I am declaring this matter formally closed."
Former Cycling NZ campaign manager Jess Massey told the court on Monday that Podmore was "furious" with the response.
The letter was sent only two months after the Heron report, which found that Cycling NZ's high performance programme did not adequately protect the welfare of athletes and others involved; a lack of accountability and effective leadership in the programme and a reluctance to surface issues.
Joshua Shaw, the counsel assisting the Coroner, asked how Matheson's informal approach to dealing with bullying allegations squared with the recommendations of the Heron report, which "should have been ringing in everyone's ears".
Shaw submitted that declining to take the bullying allegations further "arguably lacked accountability or proper consideration for athlete welfare".
Matheson told the court he did not recall the letter he sent to Podmore, but accepted it appears his approach did not align with the recommendations of the report.
Matheson said he was suffering from burnout during 2018, and was "physically and mentally worn out" and did not remember any details of what actions he took to minimise or reduce the risk of bullying towards Podmore.
"I can't answer that. As I have alluded to previously I was pretty unwell at the time … my mental health was not great … maybe the decision [not to investigate] was wrong."
Earlier Matheson told the court that he did not have any evidence of an inappropriate relationship existing between a coach and athlete until April 2018 - nearly two years after the "Bordeaux incident" in which the affair was first exposed.
The inquest has heard evidence this week that Podmore had been subjected to routine bullying and intimidation by the coach and athlete in the New Zealand sprint team since July 2016 after inadvertently discovering the pair were in a relationship during a training camp in Bordeaux - three weeks out from the Rio Olympic Games.
The scandal was the central controversy covered in Heron's 2018 inquiry.
Despite an internal investigation being carried out into the Bordeaux incident and conduct issues at the Rio Olympics, Matheson said he did not have evidence to take any further action against the coach until Podmore lodged a formal complaint after the 2018 Commonwealth Games.
"I was clearly aware of rumours, and I think probably the most vivid memory I have was with the ex-chair of Cycling NZ who gave me a call in mid-2017, but we did not have any real evidence that demonstrated that relationship," Matheson said.
"The [2018] meeting with Olivia was the first real evidence we had to work with, and that was captured in the Heron report as well."
The Heron report made reference to a phone call former chairperson Simon Perry made to Matheson in May 2017 after receiving "direct confirmation of the relationship from a confidential informant".
Asked why he didn't consider this to be clear evidence on which he could take further action, Matheson said he felt it was "still just a rumour at that point".
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