{"id":83515,"date":"2026-08-30T21:18:19","date_gmt":"2026-08-30T21:18:19","guid":{"rendered":"https:\/\/www.europesays.com\/australia\/83515\/"},"modified":"2026-08-30T21:18:19","modified_gmt":"2026-08-30T21:18:19","slug":"no-conflict-of-interest-as-powerhouse-contract-goes-to-company-of-former-trustee","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/australia\/83515\/","title":{"rendered":"\u2018No conflict of interest\u2019 as Powerhouse contract goes to company of former trustee."},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" alt=\"Linda Morris\" data-testid=\"author-avatar-image\" height=\"64\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/1788124696_690_d4d8ad64be34fd17723e5390f042691099c35526.png\"  width=\"64\" class=\"sc-9a01536c-0 libeSR\"\/><\/p>\n<p data-testid=\"article-datetime\" class=\"sc-5cbbddda-5 hxoHkT\">August 31, 2026 \u2014 5:00am<\/p>\n<p>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p>AAA<\/p>\n<p>Powerhouse Museum awarded an uncontested $2 million marketing contract to a boutique agency co-founded by a former board trustee, part of more than $5 million spent on drumming up publicity before the opening of its landmark Parramatta site.<\/p>\n<p>The bespoke agency, Ki Community, was appointed by former chief executive Lisa Havilah, who abruptly departed the billion-dollar project two months before the November 7 opening of western Sydney\u2019s first state significant cultural institution.<\/p>\n<p><img decoding=\"async\" alt=\"David Borger, president of the board of the Museum of Applied Arts and Sciences.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/0654a9342daef43752a0dbe751618430c32d8f52.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>David Borger, president of the board of the Museum of Applied Arts and Sciences.Sam Mooy<\/p>\n<p>The agency was hired in December to develop a \u201ccomplex marketing, communications, and engagement plan\u201d following a selective tender process in which, the museum confirmed, Ki Community was the only applicant.<\/p>\n<p>The Sydney Morning Herald had been pressing the museum and the board\u2019s chair David Borger about the contract in the days before Havilah\u2019s shock departure.<\/p>\n<p>Arts Minister John Graham and Department of Creative Industries, Tourism and Hospitality secretary Melanie Hawyes will be under pressure at Monday\u2019s budget estimates committee to explain their role in Havilah standing aside, the adequacy of their response to complaints of procurement issues and their oversight of the museum\u2019s preopening spending, which is expected to surpass $100 million, inclusive of the $70 million cost of its five opening exhibitions.<\/p>\n<p>Graham wrote to the board of trustees on June 15, outlining his expectations that the project be delivered on time, on budget and fully compliant with procurement policies that delivered value for money for taxpayers.<\/p>\n<p><img decoding=\"async\" alt=\"The new Powerhouse at Parramatta.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/1788124698_324_a1f3433eff65987be40e623b4f5a9c92a54fd82c.gif\"  class=\"sc-d34e428-1 ldCIuB\"\/>The new Powerhouse at Parramatta.SMH<\/p>\n<p>He called for the board\u2019s co-operation in a Treasury review of the Ultimo and Parramatta projects. He said a review initiated by the department had identified \u201cdeficiencies\u201d with three major contracts, and that security and catering needed to be \u201creconsidered\u201d.<\/p>\n<p>Ki Community was founded by <a class=\"inline-link\" href=\"https:\/\/www.kicommunity.com\/biographies\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">Mark Hassell, Graeme Wills<\/a>, who headed Mojo Australia and is described as the company\u2019s visionary force, and Michael Dole. Hassell was a trustee for four years before departing in December 2024 in a board refresh in which Borger, a business lobbyist and former Labor minister, was appointed president.<\/p>\n<p>Hassell has denied any conflict of interest, saying he was not involved in the tender or the delivery of the communications project and that the company had made a declaration to that effect to the museum as part of due process.<\/p>\n<p>The appointment of Ki Community over established industry heavyweights Ogilvy Australia and Heard baffled insiders in the media and marketing sectors at the time and it sidelined the Powerhouse\u2019s internal communications team.<\/p>\n<p>Relations between Powerhouse staff and the representatives of Ki Community have deteriorated due to frustration and disagreement over strategy and delivery.<\/p>\n<p><img decoding=\"async\" alt=\"(From left) Outgoing Powerhouse Parramatta boss Lisa Havilah, and newly appointed interim chief executive Abbie Galvin, and strategic adviser Louise Herron.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/1788124698_62_1ea0cc3edd2db94dc1a65b843b50287c73975071e756cfc1f60882474bfcbac6.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>(From left) Outgoing Powerhouse Parramatta boss Lisa Havilah, and newly appointed interim chief executive Abbie Galvin, and strategic adviser Louise Herron.The Sydney Morning Herald<\/p>\n<p>As well as Ki Community\u2019s $2 million contract, Sydney-based specialist arts agency <a class=\"inline-link\" href=\"https:\/\/buy.nsw.gov.au\/notices\/7F4E9B94-B680-4542-B85DB95258635788\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">Articulate<\/a> is being paid $288,718 plus expenses for strategic public relations and communications services, and London\u2019s Bolton &amp; Quinn is being paid $275,000 for international public and media relations. The Powerhouse commissioned<a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/culture\/art-and-design\/powerhouse-commissioned-a-documentary-about-its-move-it-will-cost-more-than-1-7-million-20260724-p60i81.html\" rel=\"nofollow noopener\" target=\"_blank\"> a $1.7 million-plus<\/a> documentary about the new building\u2019s construction and design for television and cinematic release.<\/p>\n<p>Borger told the Herald the board had not endorsed the marketing contract when it was brought to it in May. He said the contract had fallen within the chief executive officer\u2019s delegations.<\/p>\n<p>\u201cWhen the board was made aware of this contract, it raised concerns around conflict of interest and potential unfair advantage and asked for these to be reviewed and managed appropriately,\u201d he said in a statement.<\/p>\n<p>\u201cThe board recently resolved to not endorse the decision that had already been taken by the CEO to approve this contract. Further, the board resolved to refer this matter to Procurement NSW for review.\u201d<\/p>\n<p>Ki Community bills itself as a \u201ccommunity of world-class creative thinkers, who see value where others don\u2019t\u201d. It does not list any clients on its <a class=\"inline-link\" href=\"https:\/\/www.kicommunity.com\/\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">website<\/a> and it has a minimal social media presence.<\/p>\n<p>Graham cited \u201cfresh allegations\u201d in announcing Havilah\u2019s departure, believed to relate to a year-old investigation into a protected whistleblower complaint alleging systemic cronyism and unethical procurement practices.<\/p>\n<p>The museum said in a statement issued before Havilah\u2019s departure that, to meet audience targets, significant industry expertise and work had been required outside the \u201cbusiness as usual\u201d work of the Powerhouse team.<\/p>\n<p>\u201cKi Community has successfully leveraged industry partnerships to drive further value back to the Powerhouse with additional in-kind and partnership marketing and advertising support for the opening of Powerhouse Parramatta,\u201d the museum said.<\/p>\n<p><img decoding=\"async\" alt=\"Premier Chris Minns, with Parramatta MP Donna Davis (left) and Powerhouse museum chief executive Lisa Havilah (right), tours the museum in 2025.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/1eda9b097c598c63f4f54589342ee2b3c6add120.jpeg\"  class=\"sc-d34e428-1 ldCIuB\"\/>Premier Chris Minns, with Parramatta MP Donna Davis (left) and Powerhouse museum chief executive Lisa Havilah (right), tours the museum in 2025.Sitthixay Ditthavong<\/p>\n<p>Asked to specify the partnerships and advertising support it had provided, the museum responded: \u201cKi Community have supported Powerhouse staff to develop the marketing campaign.\u201d<\/p>\n<p>According to a Powerhouse spokesperson, an eight-person assessment panel chaired by the museum\u2019s chief operating officer had evaluated the submission on capability, methodology, strategy and risk. Panel members declared prior professional ties where relevant.<\/p>\n<p>The museum said Ki Community had provided formal declarations that Hassell had been ring-fenced from the process. It said it was assured by the company that Hassell had not contributed directly or indirectly to the tender process. <\/p>\n<p>The Ki Community tender raises broader questions around public sector procurement. The Public Service Association has complained repeatedly to Graham about the \u201cexcessive use of external labour and consultants\u201d, and it has urged an independent financial audit of the spending and recruitment methods that had been used by senior management at the Powerhouse.<\/p>\n<p>Related Article<a href=\"https:\/\/www.smh.com.au\/culture\/art-and-design\/powerhouse-commissioned-a-documentary-about-its-move-it-will-cost-more-than-1-7-million-20260724-p60i81.html\" tabindex=\"-1\" class=\"sc-cba76dee-0 hdiTqm\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" alt=\"Lights, camera, action at the Parramatta Powerhouse.\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/08\/98cf3689711c7afb6daec084a9cbdd2af020e26b.jpeg\"  class=\"sc-d34e428-1 ioInpc\"\/><\/a><\/p>\n<p>Bill Browne, director of the Democracy and Accountability Program at The Australia Institute, said heavy reliance on external consultants risked eroding public sector capacity. He said that, where possible, the work of government should be done in-house.<\/p>\n<p>\u201cIt\u2019s particularly important when spending taxpayer money that perceived conflicts of interest are managed or, ideally, avoided altogether. Open, competitive tender processes can help reassure the community that public money is being spent well and fairly.\u201d<\/p>\n<p>Powerhouse said the Ki Community appointment had been fully vetted by independent probity adviser O\u2019Connor Marsden and that it had been executed in line with government rules. When asked if senior leadership had personally met with the former trustee before the tender, the museum said Hassell had been present for \u201cunrelated\u201d in-office meetings.<\/p>\n<p>Hassell said he had \u201cno involvement in the tender process and [I] have had no involvement in the project\u201d. Ki Community had provided the museum a signed declaration of his \u201cnon-involvement\u201d in the selective request for tender response to comply with NSW government probity and conflict of interest requirements.<\/p>\n<p>\u201cKi Community is a small team of experienced individuals focused on creating and unlocking value for clients across diverse sectors, through looking at their challenges and opportunities quite differently,\u201d he said. \u201cMembers of our team have been associated with and guided communication strategies and campaigns for many of Australia\u2019s leading companies.\u201d<\/p>\n<p>Be the first to know when major news happens. <a class=\"inline-link\" href=\"https:\/\/www.smh.com.au\/newsletter-signup?newsletter=breaking-news&amp;utm_source=EditorialArticle&amp;utm_medium=ArticleText&amp;utm_campaign=Newsletters\" rel=\"nofollow noopener\" target=\"_blank\">Sign up for breaking news alerts<\/a> on email or turn on notifications in the app.<\/p>\n<p>Save<\/p>\n<p class=\"sc-d1b14060-4 JmUoF\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.smh.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 jyLmZI iQLtAb\" rel=\"nofollow noopener\" target=\"_blank\">saved list<\/a> to add more.<\/p>\n<p>From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"August 31, 2026 \u2014 5:00am Save You have reached your maximum number of saved items. Remove items from&hellip;\n","protected":false},"author":2,"featured_media":83516,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[247],"class_list":["post-83515","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sydney","tag-sydney"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/83515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/comments?post=83515"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/posts\/83515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media\/83516"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/media?parent=83515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/categories?post=83515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/australia\/wp-json\/wp\/v2\/tags?post=83515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}