Thiess boss Nev Power quits in wake of spy row

THE CEO of one of Australia's largest construction companies, Thiess, has quit the top job weeks after being caught unawares by an industrial spying scandal.

THE CEO of one of Australia's largest construction companies, Thiess, has quit the top job weeks after being caught unawares by an industrial spying scandal.

The scandal involves Victoria's largest infrastructure project, a $5 billion-plus desalination project.

A senior Thiess source confirmed to The Australian last night that Nev Power, who was tipped to go further with Thiess, had resigned but insisted that his move was unrelated to the spying at the Wonthaggi desalination plant.

It is understood that Mr Power has told Thiess insiders that he had been headhunted to a senior role with a leading ASX-listed company and that the details were market-sensitive and would be announced in due course.

However, the timing of his departure will fuel speculation that Mr Power is leaving as a result of repercussions from the recruitment by Thiess of Australia's leading strike-breaker, Bruce Townsend, to manage a covert operation code-named Pluto Project to infiltrate the desalination project. This was rejected by a senior Thiess source last night.

"There is absolutely no association between Nev leaving Thiess and the unfortunate incidents at Wonthaggi," the source said.

Under Pluto Project, Thiess paid Mr Townsend several hundred thousand dollars over a few months from March to June this year to secretly plant "spies" into the Wonthaggi workforce to provide intelligence on the intentions of the unions and allegations of union rorts.

Thiess funnelled the money to Mr Townsend and his company, Australian Security and Investigations, as consultancy fees via a prominent Melbourne law firm, which forwarded the funds to the Hobart-based Mr Townsend, a long-time enemy of the unions.

Exposure of the spying by The Australian late last month embarrassed Thiess, Victoria's then Brumby government and Mr Power.

Union chiefs condemned the operation and more than 1000 workers downed tools for several days and walked off the job in the days leading up to the November 26 election.

Mr Power persuaded union bosses that neither he nor other Thiess executives were aware of Pluto Project until it was brought to their attention by The Australian.

The company, a subsidiary of Leighton Holdings, ousted the head of the Wonthaggi project and the human resources chief, both of whom were closely involved in establishing and running Pluto Project. The workers returned and union chiefs condemned Mr Townsend.

A senior Thiess staffer said last night that Mr Power's management of the spying scandal had been commended by Leighton executives and that his resignation now was to accept an offer "too good to refuse".

"People may speculate and raise innuendo but there is nothing to it," the staffer said. "He's been headhunted to another organisation. It has absolutely nothing to do with the desal plant."

Thiess executives are yet to receive the final version of an internal report arising from an investigation into how the spying operation was launched and conducted without the knowledge of senior management.