NBN Co report a warning call for government business enterprises

Another independent report into the governance of the National Broadband Network has recommended changes in how government business enterprises are run.

The latest report into the National Broadband Network has some stark lessons for anyone with a hand in governance of a government business enterprise.

The independent KordaMentha report tabled in Parliament yesterday evening was highly critical of the NBN Co board’s limited industry and government experience, the oversight of chair Michael Quigley and others, and found fault with the scope of information it released publicly and to the government.

Further, the Department of Finance’s Commonwealth Government Business Enterprise Governance and Oversight Guidelines (October 2011) has gaps, the report found. KordaMentha recommended updated practices for GBE oversight and departmental secretaries during caretaker periods.

The directors themselves were all skilled and experienced individuals, but lacked “dirt under the fingernails” in key areas that required deep operational experience and insight, specifically in GBEs, the telecommunications industry, construction and financial accounting and controls.

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