Speaking for the first time since Fairfax Media revealed allegations that he approved the bribing of Iraqi officials, King challenged his successor as CEO, David Stewart, on why, having claimed to have been told of the bribe, Stewart never alerted the board.
"In my whole period at Leighton I absolutely and completely refused to be involved in anything tainted by corruption," King reportedly told the .
According to a note obtained by Fairfax Media dated November 2010 Stewart, who was acting CEO, recorded being told by Leighton executive David Savage that King had approved the doubling of a fee with a subcontractor in order to hide a kickback to Iraqi officials.
When asked about the note, King responded by querying why Stewart failed to raise it with him personally.
Just one week after the note was written, Stewart and King worked side-by-side in the Middle East, he said.
"If he had raised it there would have been alarm bells everywhere. If he had told me I would have gone straight to the board. He had every opportunity to go to the chairman and the board and he didn't."
King reportedly stated that at the time there were "warring factions" inside Leighton.
Once Stewart had been selected to succeed King as the next CEO in August 2010, King claims he became ostracised within the company he had run for 23 years.
"I had little influence due to Stewart wanting to seize power and myself wanting to step backwards," the AFR reported.
"I was somewhat of a lame duck."
King spoke to the AFR about the saga after being asked to explain why, as Leighton CEO, he had flown to construction sites in a helicopter paid for by Leighton and piloted by his son.
King reportedly confirmed he used Bankstown Helicopters to fly in and out of construction sites and that the pilot for those visits was his son, Alex King, who was an employee senior helicopter instructor.
He said he had personally paid more than $150,000 so his son could obtain a helicopter licence and that Leighton only used his son's services once he was fully qualified to a senior level.
"We went to construction jobs, to mines in the Hunter Valley and showed things the company was doing to overseas guests, including people from ACS," King said, referring to the Spanish construction firm that controls Leighton's majority shareholder Hochtief.
He said Leighton paid Bankstown Helicopters at standard rates and it was not the only helicopter company Leighton used.
In response to claims Leighton made payments for gardening and handyman services at his home, King said it was part of his salary package, explaining that other senior Leighton executives also received home gardening services.
He also stated that any items purchased from bottle shops using his corporate American Express credit card would have been for company purposes.
King, who is at a trade fair in China, reportedly told the AFR he was willing to make his salary records available for inspection upon returning to Australia.
The Australian Federal Police is investigating alleged bribery cases and its perpetrators, while a number of Leighton shareholders have launched a class action against the group for allegedly failing to disclose allegations of bribery, corruption and investigated misbehaviour to shareholders who bought shares in the company in 2010-11.
“It is not appropriate for Leighton to descend to a debate over matters of fact and matters of error when those matters are the subject of investigatory and court processes,” Leighton Holdings said in a statement.
“Notwithstanding the seriousness of the matters raised, Leighton takes exception to the sweeping criticisms of its governance structures, processes and integrity.
“Leighton’s board and management condemn any form of corrupt or fraudulent behaviour.”
