TVNZ news boss Bill Ralston used the state broadcaster's credit card to pay for the lunch he shared with Prime Television rival Paul Holmes.
But he covered the cost - believed to be more than $1000 - with personal cheques from himself and Holmes before TVNZ chief executive Ian Fraser had the chance to tell him off.
"He used his TVNZ credit card because it was the only one he had with him," said Mr Fraser.
"It's not best practice and he knows that."
Mr Ralston, hired by Mr Fraser for his "mongrel" qualities, was seen lunching with Holmes earlier this month at trendy Tribeca restaurant in Auckland's Parnell.
It came after Holmes left TVNZ for rival Prime and his former bosses said he was nearing the end of his career.
Mr Fraser said he had concerns about how the bill was paid when he learnt of the lunch by reading Sunday newspapers.
"I had a concern but when I inquired into it on Monday morning, the cheque had been written and lodged - as soon as possible after that lunch. I'm never happy when the corporate card is tendered to cover personal expenditure.
"In this case, I'm prepared to accept it because I think the principle that applies has been adhered to - if it's a personal lunch, you pay for it yourself.
"He got back to TVNZ after the lunch and immediately wrote a personal cheque, which he lodged with his PA, to cover the bill.
"He also got a cheque from Paul Holmes for his part of the lunch, which is probably a world first. Bill did it without any intervention or conversation with any other member of the TVNZ senior management team, including me."
Mr Fraser said he was sorry to have missed the lunch and was a little "chagrined not to have been invited myself".
Holmes' boss, Prime chief executive Chris Taylor, also read about the lunch in Sunday newspapers and was surprised it had taken place.
"The inference was he was in discussions with TVNZ again."
He would rather the "burying of the hatchet" happened "behind closed doors".
Mr Ralston was contacted for comment. He answered the phone and said: "Goodbye."
Holmes was more forthcoming: "It was a lunch. It happened. I paid my share."
Mr Fraser also had kinder words about Holmes than have been heard from TVNZ since he left the network.
"Unfortunately, we don't have a programme for Paul. I understand he's still contracted to Prime.
"The guy is a very big talent. I always tried at least to be honest and straightforward about that.
"There's no point in saying he's hopeless. It's not even true to say his day is past, although I notice that has also become urban myth from my mouth. The guy is very good.
"He has rewritten the rule book in terms of television presentation."
- HERALD ON SUNDAY
TVNZ card used for $1000 Holmes lunch
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