NBN Co in conflict call

A former Telstra executive believed to be working on NBN Co's strategic review still has a $1.5 million stake in Telstra, presenting a potential conflict of interest.

By InvestSMART · 23 Oct 2013

By InvestSMART ·
23 Oct 2013

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A former Telstra executive believed to be working on NBN Co's strategic review still has a $1.5 million stake in Telstra, presenting a potential conflict of interest.

Justin Milne has reportedly started working inside NBN Co along with another former Telstra executive, JB Rousselot, conducting a strategic review to help the new government decide how to proceed with the NBN rollout. This includes whether NBN Co should renegotiate a multibillion deal with Telstra, which could potentially benefit shareholders.

Mr Milne still owns 305,000 Telstra shares, worth about $1.5 million at Tuesday's closing price of $5.01, according to a search of the company's share registry by Fairfax Media on Monday. The shares appear to be part of Telstra's 2006 and 2010 bonus program and were no longer restricted.

A spokesman for NBN Co said it would not "comment on rumour and speculation" on staff appointments.

A spokesman for Communications Minister Malcolm Turnbull said staff appointments were a matter for NBN Co. Mr Milne has not responded to requests for comment.

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Frequently Asked Questions about this Article…

What is the potential conflict of interest involving NBN Co and Telstra?

The potential conflict of interest arises because a former Telstra executive, Justin Milne, who is involved in NBN Co's strategic review, still holds a $1.5 million stake in Telstra. This situation could influence decisions regarding the NBN rollout and any renegotiation of deals with Telstra.

Who is Justin Milne and what is his role in NBN Co?

Justin Milne is a former Telstra executive who is reportedly working on NBN Co's strategic review. His role involves helping the new government decide on the future direction of the NBN rollout, including potential renegotiations with Telstra.

Why is Justin Milne's Telstra shareholding significant?

Justin Milne's Telstra shareholding is significant because it could represent a conflict of interest. As he is involved in NBN Co's strategic review, his financial interests in Telstra might affect impartial decision-making regarding the NBN's dealings with Telstra.

What is the strategic review at NBN Co about?

The strategic review at NBN Co is aimed at helping the new government decide on the future of the NBN rollout. This includes evaluating whether NBN Co should renegotiate its multibillion-dollar deal with Telstra, which could impact shareholders.

Has NBN Co commented on the potential conflict of interest?

NBN Co has not commented on the potential conflict of interest, stating that they do not comment on rumor and speculation regarding staff appointments.

What is the stance of the Communications Minister on NBN Co's staff appointments?

The Communications Minister, Malcolm Turnbull, has indicated that staff appointments are a matter for NBN Co to decide, and his spokesman has not provided further comment on the issue.

How many Telstra shares does Justin Milne own?

Justin Milne owns 305,000 Telstra shares, which are valued at approximately $1.5 million based on the recent closing price.

What is the current status of Justin Milne's Telstra shares?

Justin Milne's Telstra shares, which were part of the company's 2006 and 2010 bonus program, are no longer restricted, allowing him full control over them.