Malcolm Fraser was etched in history when he became a hero Prime Minister for the Liberal Party and again when he boldly ditched his party to cross the political divide . But wherever Mr Fraser 's name comes up , so too does the notorious incident in Memphis , Tennessee , in October 1986 when he lost his pants . The former Prime Minister , who died aged 84 on Friday , wandered into the foyer of a Memphis hotel frequented by prostitutes and drug dealers at 7am wearing nothing but a towel . Scroll down for video . Malcolm Fraser wandered into the foyer of a Memphis hotel frequented by prostitutes and drug dealers in October 1986 wearing nothing but a towel - the tale has become one of the most intriguing political scandals . He was in America to give a speech to the Memphis Economic Club in his role as the head of the Commonwealth Eminent Persons Group when he decided to go for a drink . It has become one of Australia 's most intriguing political scandals given Mr Fraser could not recall what happened to him and he always refused to comment on it . ' I wish I 'd never been to bloody Memphis , ' he told a Sydney newspaper at the time . He was in America to give a speech to the Memphis Economic Club in his role as the head of the Commonwealth Eminent Persons Group . Mr Fraser decided to go for a drink at the Peabody Hotel after his duties 'hoping to find some of the famous live blues venues ' , according to his memoir , Malcolm Fraser : The Political Memoirs , published in 2010 . It has become one of Australia 's most intriguing political scandals given Mr Fraser could not recall what happened to him and he always refused to comment on it . Mr Fraser decided to go for a drink at the Peabody Hotel after his duties 'hoping to find some of the famous live blues venues ' but he awoke the next day at the Admiral Benbow Hotel - ' a notoriously seedy dive ' His wife Tamie Fraser ( left ) shed light on the scandal for the first time back in 2007 agreeing he had been drugged and claimed he was probably 'set up ' by his fellow delegates . But he awoke the next day at the Admiral Benbow Hotel - ' a notoriously seedy dive ' . He had checked in after midnight and paid with a $ 100 bill . He was missing his pants , a $ 10,000 Rolex , passport , wallet and $ 600 cash . Mr Fraser had always maintained that he was drugged and denied it was just a wild drunken American night . Reports that he walked into the hotel lobby wearing a towel claiming he had been drugged were greeted with amusement back home in Australia . His wife Tamie Fraser shed light on the scandal for the first time back in 2007 . Mr Fraser has always maintained that he was drugged and denied it was just a wild drunken American night . Reports that he walked into the hotel lobby wearing a towel claiming he had been drugged were greeted with amusement back home in Australia . She claims he was probably 'set up ' by his fellow delegates , according to The Australian . 'They were having him on . Poor old boy . Someone must have slipped him a mickey finn as soon as he walked in . He rang me up and told me about it when he got back to his own hotel . There was this awful voice , ' Mrs Fraser said . Ms Fraser shunned claims her husband spent the night with a prostitute . 'He might have gone off with someone here or there at some time but he would n't go to a bar to meet someone on the off chance -- they were setting him up . Poor old boy . It 's really horrible . He was so embarrassed . And still is . ' The concierge at the hotel , a woman named Maryanne , remembered seeing Mr Fraser trying to shield himself with the towel , the Daily Telegraph reported . 'They 're not real big , ' she said of the towels . 'And I do remember he was fairly big man . '
Malcolm Fraser wandered into foyer of Memphis hotel in the next day . PM was wearing nothing but his pants and claimed to have been drugged . It has become one of Australia 's most intriguing political scandals . Mr Fraser had always refused to comment on the notorious incident . He had gone for a drink after giving speech to Memphis Economic Club . Mr Fraser always maintained it was n't just a wild drunken American night .