new in Ethics report (7): did Grewal intentionally mislead the commissioner diplomat offer in May 17th meeting?

From the Ethics Commissioner's report:

The testimony of Mr. Dosanjh, Mr. Grewal and Mr. Murphy is relatively consistent as to what transpired during the meeting in Mr. Dosanjh’s office in the Confederation Building at 1:00 pm Tuesday, May 17, 2005.

Prior to the arrival of Mr. Murphy at this meeting, Mr. Dosanjh and Mr. Grewal both agree that there was further discussion in relation to Mr. Grewal’s retirement and pension entitlement. However, their stories differ in the following respect. On one hand Mr. Dosanjh testified that Mr. Grewal was extremely excited about the crossing of the floor of Belinda Stronach, that morning, and how it was now easy for him to be appointed to Cabinet. However, Mr. Grewal’s account was that Mr. Dosanjh suggested a Cabinet position or diplomatic post for him and a Senate seat for his wife. (my emphasis)

Grewal's claim that he was offered a diplomatic post during the meeting at 1 pm on the 17th is very odd. We have that whole meeting on tap (you can read the whole transcript here (red is what was edited out of the version released to the public on May 31st) or see the scans here (where yellow marks what is edited out)). In that conversation there is no hint at any diplomatic appointment anywhere in any of the recordings, except, perhaps, here, where Murphy says that the PM had ruled out an appointment outside of politics.

For the moment I want merely to point out that Grewal's statement to the commission that a diplomatic post was discussed in this meeting is clearly false, and can very simply be shown to be false.

What I don't understand is what Grewal was thinking when he said this to the commissioner? I will comment shortly on the bizarre decision of the Commissioner not to use the tapes to judge the various reports that Grewal, Dosanjh, and Murphy made of them. But surely Grewal would have expected his account of the meeting to be compared to the recordings of that meeting.