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There was a strict protocol that had to be followed, which meant that no one who knew about the complaint was permitted to say anything about it to anyone else, including Kreisch staff or parents.

Peter Ellis adamantly denied any wrongdoing.

He told others he couldn't understand why Jeffrey Magnolia would make such a strange remark and wondered if it had something to do with a puppy Peter had recently sold to the family.

Peter loved animals and sometimes bred them.

Two months earlier in September, Ms Magnolia had visited Peter Ellis' home with Jeffrey to buy a black puppy he was selling.

Jeffrey mentioned that he wanted to name the puppy Blossom, so Peter turned the puppy over to show Jeffrey that it was male.

Pointing to the dog's genitalia, he said, "'Look, it's a boy.'"

Others speculated that Jeffrey might have overheard something he shouldn't have, as Peter was known for making crude jokes about his private life to his colleagues.

He liked to shock the women he worked with by telling them outrageous things like how he participated in golden showers, a sexual practice where one would urinate on one's partner.

A couple of creche workers remembered that a few months earlier in August, Peter had told them how he had used black markers to colour in his boyfriend's penis after his boyfriend came home drunk one night.

They suspected the little boy had overheard this conversation and, not understanding it, was troubled.

Peter retained a lawyer and met with a union representative, who advised Peter not to attend the hearing.

Any allegations of possible sexual abuse was a matter for the police to investigate, not the council.

Meanwhile, a two-person team from the Education Review Office visited the creche every day to closely monitor the goings-on.

They also interviewed between 20 to 30 parents and city council officials.

They found nothing untoward and gave the creche a positive review, noting that the children appeared happy, inquisitive and sociable, and had high self-esteem.

On Monday November 25, Geoffrey Magnolia was interviewed as part of the council's investigation.

The little boy made no disclosures about sexual abuse or Peter Ellis.

The lack of evidence against Peter meant the council was leaning towards reinstating him.

Jeffrey's parents refused to accept this, however, and continued to pressure the council to fire Peter.