After months of denying any wrongdoing, Andre Ouellet, Canada's highest-paid political appointee, has resigned amid allegations of mismanagement and misspending contained in an audit of Canada Post.

Ouellet, 65, informed Revenue Minister John McCallum yesterday by fax of his immediate resignation, which McCallum accepted.

His resignation came after an audit found Ouellet, who made $400,000 a year in salary and bonuses, had a questionable role in hiring practices, meddled in the awarding of some contracts, and had $2 million in travel and hospitality expenses over the past eight years.

In his letter to McCallum, Ouellet said he is 'retiring.'

He said he believed many Canadians were satisfied with his explanations of the audit findings released July 29.

'Unfortunately there are still many, including the majority of the members of Parliament who will never accept them,' he wrote.