0/5

Government pays SKY News after Australia Network debacle

The government is reported to have paid SKY News $2m in legal costs following the Australia Network tender debacle.

The government is reported to have paid SKY News $2m in legal costs following the Australia Network tender debacle.

Last year the government ended the tender and awarded the 10 year contract back to the ABC, despite recommendations it be awarded to SKY News.

Senator Stephen Conroy ended the tender citing media leaks, which followed a switch from former Foreign Minister Kevin Rudd handling of the process. The Australian Federal Police are currently investigating the media leaks.

At the time Opposition communications spokesman Malcolm Turnbull  called the decision, “…a slap in the face for SKY News, its principal shareholder News Corporation and its principal proponent within the Government, Kevin Rudd.”

The Australian, which published the leaks, today reports Cabinet approved costs to SKY News.

“In terms of compensation, a settlement has been reached, with the terms of that settlement confidential to the parties,” the minister’s office told the newspaper.

Meanwhile, Auditor-General Ian McPhee has confirmed the government had ignored the “unanimous professional judgement” of the tender evaluation board to award the contract to SKY News.

“The manner and circumstances in which this high profile tender process was conducted brought into question the government’s ability to deliver such a sensitive process fairly and effectively,” he said.

You can read the Auditor General’s report here.

Leave a Reply