Turnbull appoints three communications veterans to NBN Co board

By InvestSMART · 13 Nov 2013

By InvestSMART ·
13 Nov 2013

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Communications Minister Malcolm Turnbull has appointed three telecommunications veterans to the board of the company charged with building Australia's national broadband network, one of whom owns a significant number of Telstra shares and another who previously left the company on unceremonious terms.

The three non-executive directors appointed to NBN Co's board are Patrick Flannigan, Simon Hackett and Justin Milne. They join board members Dr Ziggy Switkowski, Alison Lansley and Dr Kerry Schott.

Mr Milne still owns $1.5 million of shares in Telstra and is believed to have been an NBN Co consultant before Tuesday's appointment.

Mr Milne maintains a conflict of interest, given the NBN Co board will be expected to approve any changes to the multibillion dollar deal with Telstra.

He also sits on the Tabcorp board with Dr Switkowski and was chief executive of OzEmail.

A spokesman for the Communications Minister said Mr Milne "has already started moves to get rid of [the shares]".

Mr Flannigan resigned as NBN Co's head of construction in 2011 after the government-owned enterprise was forced to suspend its building tenders because of higher than expected costs.

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Frequently Asked Questions about this Article…

Who are the new board members appointed to NBN Co?

The new board members appointed to NBN Co are Patrick Flannigan, Simon Hackett, and Justin Milne. They join existing members Dr. Ziggy Switkowski, Alison Lansley, and Dr. Kerry Schott.

What is the significance of Justin Milne's appointment to the NBN Co board?

Justin Milne's appointment is significant because he owns $1.5 million in Telstra shares, which presents a potential conflict of interest given NBN Co's dealings with Telstra. However, he has started the process of divesting these shares.

Why is there a potential conflict of interest with Justin Milne on the NBN Co board?

The potential conflict of interest arises because Justin Milne owns a significant number of Telstra shares, and NBN Co's board will need to approve any changes to the multibillion-dollar deal with Telstra.

What is Patrick Flannigan's history with NBN Co?

Patrick Flannigan previously served as NBN Co's head of construction but resigned in 2011 after the company had to suspend its building tenders due to higher than expected costs.

What steps is Justin Milne taking to address his conflict of interest?

Justin Milne is taking steps to divest his Telstra shares to address the conflict of interest related to his position on the NBN Co board.

How does Simon Hackett's appointment impact NBN Co?

While the article does not provide specific details about Simon Hackett's impact, his appointment, along with other experienced telecommunications veterans, is expected to strengthen the board's expertise in overseeing the national broadband network.

What role does Dr. Ziggy Switkowski play on the NBN Co board?

Dr. Ziggy Switkowski is an existing member of the NBN Co board and also serves on the Tabcorp board alongside Justin Milne.

Why did the government suspend NBN Co's building tenders in 2011?

The government suspended NBN Co's building tenders in 2011 due to higher than expected costs, which led to Patrick Flannigan's resignation as head of construction.