NBN Co construction boss quits amid storm of controversy

Stan Beer
Tuesday, 05 April 2011 14:45

IT Policy - Government Tech Policy

Just days after NBN Co ditched all the tender submissions for building the National Broadband Network, Patrick Flannigan, head of construction, has added to the growing storm of controversy surrounding the process by resigning his position at the company. Mr Flannigan was one of the key directors at the company and indications are that his parting was not amicable as there was no reason given for his resignation.

Mr Flannigan, founding MD of telecoms solutions provider Service Stream and a former GM of Skilled Engineering, joined NBN Co in December 2009 to head up the network infrastructure construction division. He is considered to be one of most experienced managers in the telecoms infrastructure business.

Last week NBN Co announced that it would halt the tender for construction of the NBN because it claimed that the prices submitted by the 14 shortlisted tenderers were too high. This later led to accusations from Government circles of price gouging by the building companies.

In turn, the Federal Opposition claimed the Government did not have a handle on the cost of the project.

Then reports emerged that NBN Co would negotiate with a single building company Silcar, a joint venture between Leighton and Siemens.

Most recently, there have been further reports of building industry skills shortages, leading to upward pressure on costs.

The resignation of Mr Flannigan has caught everyone by surprise and it is the sort of added publicity that NBN Co and the Government did not need.

According to a report in The Australian, NBN Co in a canned statement through a spokesperson said it was "disappointed" that Mr Flannigan had decided to resign.