Fresh allegations over “governance and procurement practices” levelled at Powerhouse chief Lisa Havilah have seen her step down less than three months out from the $915 million building’s grand opening. The shock decision comes just days after the institution announced its full program and less than a fortnight after it cemented its opening date.
Powerhouse Parramatta, a 33,000sqm museum that has been more than a decade in the making, is scheduled to open on November 7.
“Following new allegations, the Chief Executive has stood aside while investigations into governance and procurement are finalised,” said NSW Arts Minister John Graham in a statement.
The news comes amid a months-long investigation into a whistleblower complaint alleging “wrongdoing” at the Powerhouse made under the Public Interest Disclosure Act. That complaint is understood to include concerns about hiring and procurement practices.
Staff were told on Thursday afternoon that Havilah would depart while the NSW government completes an investigation into “governance and procurement practices” at the Powerhouse.
Havilah has spent seven years leading the museum through the most consequential redevelopment in its history: a $1.2 billion overhaul of its four Sydney sites, centred on the construction of a major new museum at Parramatta and the redevelopment of its historic Ultimo home.
The transformation has been contentious from the outset. The plan to move the museum from Ultimo to Parramatta was announced by Mike Baird in 2014. A parliamentary inquiry was established in 2016 and fund the relocation had been based on “poor planning and advice, a flawed business case and insufficient community consultation.”
The proposed development also required the demolition of Willow Grove, a historically significant 19th-century Italianate villa and former maternity hospital, with a committee report saying the plan “robbed Parramatta of its rapidly dwindling heritage”.
On Thursday, in a letter to staff, seen by The Australian, NSW Department of Creative Industries secretary Melanie Hawes said she had stood aside due to an “ongoing investigation”. “As you would be aware from recent media reports, there is an ongoing investigation into matters relating to governance and procurement practices at the Powerhouse.”
“After speaking with the chief executive earlier today, Lisa Havilah will be standing aside while the investigation is completed.
Hawes told staff there would be no impact on preparations for the Parramatta museum’s opening. “I recognise that this news comes at a significant time for the organisation, as we prepare for the opening of Powerhouse Parramatta.
“I know how much work, commitment and personal energy all of you have invested in reaching this milestone, and I want to assure you that there will be no impact to the existing programs of work, or the opening on November 7.”
A spokesperson for the Department of Creative Industries, Tourism, Hospitality and Sport said: “The matters under consideration are complex and involve multiple lines of inquiry. The Department has a responsibility to address these matters with due diligence and procedural fairness. Like all NSW Government entities, Cultural Institutions are expected to adhere to the NSW Public Service values of integrity, trust, service and accountability, and to operate in line with the NSW Government Procurement Policy Framework.
As the investigation is continuing and no formal findings or conclusions have been made, it would not be appropriate to provide further comment at this stage.”
NSW Government Architect Abbie Galvin has been appointed interim chief executive, while former Sydney Opera House chief executive Louise Herron will serve as strategic advisor.
NSW Treasury was recently brought in to oversee the Powerhouse’s operating budget following claims the institution had spent more than $70m ahead of the Parramatta opening. The museum has also faced scrutiny over a film commissioned to document the Parramatta project, reportedly budgeted at $2.5 million, and a $2.6 million “artistic associates” program that was subsequently axed.
Speaking to The Australian recently during a tour of the almost-completed building, Havilah said she felt “a huge sense of responsibility” for the project and predicted the museum would attract two million visitors a year.
“I see that responsibility to the government, but I really see my responsibility to the community to create something that provides opportunity, has meaning and actually shifts culture,” she said.
She also addressed the years of criticism that had accompanied the project. “The Powerhouse has to move forward,” Havilah said. “Sometimes, museums have to change to stay relevant.”
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