I'm not sure what the chatter was, but this all predated Topshee by who knows how many CRCNs now (7, 8?), and I think the environmental L1s have far less actual influence over purple functions than they think.
As an aside, surprised there aren't more major scandals with people doing things about punishment postings. If someone has already tried to ruin your career, really nothing to lose, so seems like opportunities for lots of petty revenge between complaints to the various ombudsmen, abuse of power complaints, going to your MPs, news papers etc. And if you are really petty, for $5 a submission you can submit a daily ATI on their work if you want.