Melania Trump
First Lady Melania Trump and US President Donald Trump (not pictured) attend the 60th Annual Red Cross Gala at Mar-a-Lago club in Palm Beach, Florida, US, February 4, 2017. Reuters/Carlos Barria

One of US First Lady Melania Trump’s first hires since she became FLOTUS was her friend Stephanie Winston Wolkoff. Now the FLOTUS’ office said in a statement that it has ended its contract with her amid criticism over the US$26 million (AU$33 million) she allegedly received to plan US President Donald Trump’s inauguration.

The sacking was first reported by The New York Times. The publication reports that Wolkoff’s firm WIS Media Partners spent twice as much money than the amount for former president Barack Obama’s inauguration. Reports claim that WIS Media Partners was established as a company just weeks before Trump’s inauguration.

Melania’s spokeswoman Stephanie Grisham told USA TODAY that the office had “severed the gratuitous services contract with Ms Wolkoff.” The POTUS was reportedly “enraged” over the huge bill.

Wolkoff was hired as “a special government employee” to work on particular projects. Grisham expressed gratitude to Wolkoff’s hard work and added that they wish her all the best.

Wolkoff, who will no longer work on official White House business, has explained the changes, saying she was informed by the White House counsel’s office that all gratuitous volunteer contracts were ended. She said she expects to still be a trusted source for advice and support on an informal basis.

As for the money paid by the inaugural committee, Wolkoff explained that her firm spent the overwhelming majority on services to subcontractors, which included satellite feeds provided to broadcasters worldwide. She added that she is proud of the work they did to help with the inauguration, and that news coverage of her work was “completely unfair.”

The first lady’s spokeswoman said that Melania “had no involvement” with the inaugural committee. She also “had no knowledge of how funds were spent.” Tax documents show that the committee had money left on hand, which was intended to be donated to charity.

The first lady and Wolkoff are expected to remain friends. The former model was in attendance during Wolkoff’s 40th birthday party in 2010. Photos of the two together were shared on the internet.

Wolkoff had helped Vogue editor Anna Wintour plan the annual Met Gala. She has reportedly been Melania’s friend for years and is said to be one of the first people Melania turned to following the election of her husband.

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