Airservices chairman Angus Houston to face Senate grilling
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Airservices chairman Angus Houston to face Senate grilling
From The Australian, 20-08-2015
Airservices chairman Angus Houston to face Senate grilling
A Senate committee will call Airservices Australia chairman Angus Houston and other board members before it to explain how much they knew about allegedly “dodgy” and “incestuous” dealings surrounding contracts awarded for a $1.5 billion state-of-the-art national air traffic control system.
The Australian can also reveal the rural and regional affairs and transport legislation committee will write to the National Audit Office seeking an urgent “serious audit” of Airservices.
On Tuesday, the committee examined revelations in The Australian about executive bonuses of up to $100,000 that were paid in a financial year that saw profits halved and return on equity targets unmet.
Labor and Coalition senators, along with independent Nick Xenophon, grilled acting Air*services chief executive Jason Harfield. Liberal senator Sean Edwards asked how a government-owned monopoly with no competitors could justify paying bonuses.
The hearing canvassed evidence of a complex web of personal and corporate connections among Airservices executives, consultants and contractors, variously described by senators as “incestuous” and “dodgy”.
It emerged Airservices has paid a consulting group, the International Centre for Complex Project Management, several million dollars to advise it on the program to integrate the civilian and military air traffic control systems by 2021, called OneSKY.
An ICCPM consultant, former RAAF officer Harry Bradford, has already been paid $1 million to act as Airservices’ lead negotiator in talks with the successful prime contractor, international aerospace group Thales.
Thales Australia’s managing director, Chris Jenkins, is also chairman of ICCPM, prompting senators to ask why there was not a conflict of interest with Mr Bradford paid by Airservices to negotiate on its behalf a deal with the head of his own consultancy group.
In addition, a former ICCPM officer now employed by Airservices, Steve Hein, helped process a payment of contract services provided by ICCPM, whose managing director is his wife, Deborah Hein. Mr Harfield told the hearing he could see no conflict of interest, and said “we have very stringent probity and procedures”.
Labor senator Joe Bullock told Mr Harfield “you occupy a parallel universe”. Mr Harfield eventually admitted he could not guarantee that the Airservices board knew of the interconnections when it signed off on giving the prime contract to Thales. The deputy chairman of the committee, Labor senator Glenn Sterle, said the whole scenario left him “gobsmacked”.
Senator Xenophon said: “It’s imperative that the chair of Airservices Australia, Sir Angus Houston, be called, together with any board members that he wishes to bring with him. The buck stops with the board, and there were many unanswered questions.”
The Australian has been told the committee intends to seek an investigation by the Auditor-General. The committee chairman, Liberal senator Bill Heffernan, said “it may be appropriate for the committee to not only call the board, but also have consideration with regard to the Australian National Audit Office”, but he declined to comment further.
Airservices spokesman Rob Walker did not answer questions put to the organisation.
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Folks,
From the Australian this morning.
The RRAT Standing Committee is really getting serious with Airservices.
Tootle pip11
Airservices chairman Angus Houston to face Senate grilling
A Senate committee will call Airservices Australia chairman Angus Houston and other board members before it to explain how much they knew about allegedly “dodgy” and “incestuous” dealings surrounding contracts awarded for a $1.5 billion state-of-the-art national air traffic control system.
The Australian can also reveal the rural and regional affairs and transport legislation committee will write to the National Audit Office seeking an urgent “serious audit” of Airservices.
On Tuesday, the committee examined revelations in The Australian about executive bonuses of up to $100,000 that were paid in a financial year that saw profits halved and return on equity targets unmet.
Labor and Coalition senators, along with independent Nick Xenophon, grilled acting Air*services chief executive Jason Harfield. Liberal senator Sean Edwards asked how a government-owned monopoly with no competitors could justify paying bonuses.
The hearing canvassed evidence of a complex web of personal and corporate connections among Airservices executives, consultants and contractors, variously described by senators as “incestuous” and “dodgy”.
It emerged Airservices has paid a consulting group, the International Centre for Complex Project Management, several million dollars to advise it on the program to integrate the civilian and military air traffic control systems by 2021, called OneSKY.
An ICCPM consultant, former RAAF officer Harry Bradford, has already been paid $1 million to act as Airservices’ lead negotiator in talks with the successful prime contractor, international aerospace group Thales.
Thales Australia’s managing director, Chris Jenkins, is also chairman of ICCPM, prompting senators to ask why there was not a conflict of interest with Mr Bradford paid by Airservices to negotiate on its behalf a deal with the head of his own consultancy group.
In addition, a former ICCPM officer now employed by Airservices, Steve Hein, helped process a payment of contract services provided by ICCPM, whose managing director is his wife, Deborah Hein. Mr Harfield told the hearing he could see no conflict of interest, and said “we have very stringent probity and procedures”.
Labor senator Joe Bullock told Mr Harfield “you occupy a parallel universe”. Mr Harfield eventually admitted he could not guarantee that the Airservices board knew of the interconnections when it signed off on giving the prime contract to Thales. The deputy chairman of the committee, Labor senator Glenn Sterle, said the whole scenario left him “gobsmacked”.
Senator Xenophon said: “It’s imperative that the chair of Airservices Australia, Sir Angus Houston, be called, together with any board members that he wishes to bring with him. The buck stops with the board, and there were many unanswered questions.”
The Australian has been told the committee intends to seek an investigation by the Auditor-General. The committee chairman, Liberal senator Bill Heffernan, said “it may be appropriate for the committee to not only call the board, but also have consideration with regard to the Australian National Audit Office”, but he declined to comment further.
Airservices spokesman Rob Walker did not answer questions put to the organisation.
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Folks,
From the Australian this morning.
The RRAT Standing Committee is really getting serious with Airservices.
Tootle pip11
Last edited by LeadSled; 20th Aug 2015 at 01:23. Reason: Minor edit and proper attribution to The Australian
I can hardly wait for the sensational report and hard-hitting recommendations of the Committee to be ignored by the government and Airservices.
Yawn! Yet more Senate RRAT theatre.
Perhaps just a bit like the usual Senate estimates stuff? (All about trying to embarrass the government for political advantage.)
It's rather sad that anyone still believes that this stuff contributes to any actual beneficial changes for General Aviation.
But I continue to live in vain hope..
Perhaps just a bit like the usual Senate estimates stuff? (All about trying to embarrass the government for political advantage.)
It's rather sad that anyone still believes that this stuff contributes to any actual beneficial changes for General Aviation.
But I continue to live in vain hope..
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Might be a waste of time but it'll still be interesting to hear the defensive argument put forward. Doesn't look good on the face of it. Is it stupidity or just plain old arrogance that makes people think they can get away with this sort of thing, without anyone picking them up on it..? Even if there was nothing untoward going on, it just looks bad. 
PS - speaking of Creampuff, you've been very quiet of late....what's up?
PS - speaking of Creampuff, you've been very quiet of late....what's up?
Now we know why Staib went early, poor thing.
I still have the scars from my experience of trying to deal with large/complex projects ($60 million ++ customer information system) where the contractor was engaged in multi level marketing and had their hooks into the organisation at each project level from top to bottom.
My guess would be that Thales is firmly in the drivers seat and Airservices is just along for the ride. I've written previously about the strategy and tactics of multi level marketing and I would guess that Staib copped both barrels from Thales.
I still have the scars from my experience of trying to deal with large/complex projects ($60 million ++ customer information system) where the contractor was engaged in multi level marketing and had their hooks into the organisation at each project level from top to bottom.
My guess would be that Thales is firmly in the drivers seat and Airservices is just along for the ride. I've written previously about the strategy and tactics of multi level marketing and I would guess that Staib copped both barrels from Thales.
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And why didnt the Executive (sic) GM in charge of the project fall on his sword as well? Nah too hard lets just make him A/CEO. Bizarre organisation marching to the beat of its own drum.
