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ABC board director under pressure over Digicel position

By Zoe Samios

ABC directors have raised concerns about a potential conflict of interest on the board of the public broadcaster, after one of its most recently appointed members accepted a position linked to one of its technology suppliers, Telstra.

Media sources familiar with the situation, who requested anonymity because board discussions are confidential, said some ABC board members had objected to director Fiona Balfour’s recent appointment as a director of Telstra-owned Pacific telco operator Digicel. The government and Telstra completed the acquisition of Digicel Pacific in July, a move designed to prevent Chinese interests from acquiring the telco amid heightened national security concerns.

Fiona Balfour was appointed to the ABC Board last May.

Fiona Balfour was appointed to the ABC Board last May.

Some members of the ABC board believe the appointment is a conflict of interest because the ABC has contracts in place with Telstra and believe Balfour should resign. Others on the ABC board disagree.

Balfour has been approached for comment. An ABC spokesperson said it does not comment on board matters.

This masthead is not suggesting Balfour is in breach of her board duties or that a conflict of interest has been substantiated. Only that some concerns exist at board level about her position.

Communications Minister Michelle Rowland declined to comment on whether she had been notified about any conflict of interest concerns at the ABC. Board appointments at Digicel are the responsibility of Telstra and DFAT.

Balfour, a former chief information officer at Qantas and Telstra, joined the ABC board last May with former News Corp and Foxtel boss Peter Tonagh, and former Seven executive and Australia Post board member Mario D’Orazio. She has worked in several sectors including the aviation and financial services industry and sits on boards including Western Sydney Airport and Airservices Australia.

Unlike Tonagh and D’Orazio, Balfour was put on the board by former communications minister Paul Fletcher, who tabled the reasons for her appointment in parliament.

Telstra owns 100 per cent of Digicel, but $1.9 billion in funding for the $2.1 billion deal was provided by the federal government.

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Digicel Pacific established a board in August, made up of representatives from Telstra and independent directors. Sources familiar with the Digicel Pacific board said Balfour was recommended due to her experience on other government affiliated boards such as the ABC and Western Sydney Airport.

Non-executive directors for the ABC board are required to have experience with media, business and financial management, corporate governance or cultural policy and need to have a geographic spread across the states and territories. They are required to have no conflicts of interest – meaning any other commercial, personal or political activity can’t compete with their ABC interest.

The rules say there can be no fewer than four, and no more than six, in addition to the managing director, chairperson and staff-elected director. The board meets six times a year, with remuneration of $58,670 a year for non-executive directors.

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Original URL: https://www.smh.com.au/business/companies/abc-board-director-under-pressure-over-digicel-position-20220826-p5bd48.html