Poor quality navy video is inconclusive
An inquiry into allegations that asylum seekers trying to reach Australia had thrown their children overboard has found there was no evidence to support the claims.
In the run up to last year's general election in Australia, ministers used the incident to justify their tough line on refugees, an important fact in securing Prime Minister, John Howard, a third term in office.
But a report now shows that senior ministers knew the claims were baseless, but said nothing.
Mr Howard first told journalists that the asylum seekers had thrown their own children into the sea as a Navy vessel approached their boat during an election campaign dominated by the government's tough line on refugees.
But just three days after Mr Howard's October 2001 statement officials knew there was no evidence to support the allegations.
Opposition anger
It has also been revealed that photos, apparently showing Navy personnel rescuing the children, were in fact taken a day later and show the rescue of asylum seekers after their boat sank.
Peter Reith - the defence minister at the time who has now left politics - is being accused of withholding the truth about the incident.
The prime minister says he was never told, although his office and that of the immigration minister were both informed of the doubts about the story.
The opposition say the government lied and used the incident to secure a dirty victory in the general election.