CIT board deputy chair Kate Lundy will succeed Craig Sloan as chair from 1 July – but the Canberra Liberals are concerned given she was on the board when CEO Leanne Cover entered a controversial multi-million dollar contract with Patrick Hollingworth.

Ms Lundy was Labor Senator for the ACT from 1996 to 2015; her ministerial portfolios included multicultural affairs, industry and innovation, and the digital economy.

ACT Skills Minister Chris Steel said Ms Lundy was appointed to the CIT board because of her considerable experience working in the defence and cyber industry sectors, including as Defence Industry Advocate and acting chair of the Cyber Security Cooperative.

She was ACT Defence Industry Advocate from 2016 to 2018, and helped the ACT Government establish the Defence Industry Advisory Board and the program of work under the Defence Industry Strategy.

The board elected Ms Lundy as the next chair in May 2021.

“There is a business-critical need for continuity in board leadership during a current period of reform and transition for CIT,” Mr Steel informed the Legislative Assembly Committee for Education, Employment and Youth Affairs.

But opposition leader Elizabeth Lee said today the decision to promote Ms Lundy was yet another failure on Mr Steel’s part: Ms Lundy had been deputy chair since April 2020, and, as a member of the board, presided over the contracts with Mr Hollingworth.

“Appointing the deputy chair, a former ACT Labor Senator who has been on the board for most of these contracts, to the position of chair raises serious concerns,” Ms Lee said.

“The deputy chair was on the board when concerns over these contracts were raised with the minister for skills in March 2021.

“The deputy chair was on the board when it responded to the minister’s concerns with reassurances that the contracts represented value for money.

“The deputy chair was on the board when the latest contract for $4,999,990 was signed in March this year.”

Mr Steel’s office noted that the committee, which includes a Liberal member, provided no comment on the appointment.

At the time, the Hollingworth contracts were not publicly known. The ABC broke the story at the start of June, more than a year after Ms Lundy’s appointment.

“Since this issue was brought to light, the minister has attempted to evade scrutiny by saying he is at arm’s length from CIT, but we know that is not the case,” Ms Lee said.

“The Act clearly states CIT must comply with any direction of the minister. In fact, he used those powers over a year ago to promote the deputy chair to chair of the board from 1 July 2022.

“With this appointment being made on 17 May 2021, over a year ago, the minister’s claims last week that he is taking strong action, including refreshing the board, is simply not true.”

Mr Steel’s office claimed that Ms Lee misrepresented the role of the minister in relation to the independent authority under the CIT Act.

“The minister does not have the power to order that the CIT do or not do a particular thing. The minister can only provide broad directions.”

Ms Lee said Mr Steel’s response and lack of accountability over the contracts “underwhelmed” the Canberra public.

“Over two weeks since this issue was brought to light there are still many questions to be answered by the minister, chief minister, and CIT board,” Ms Lee said.

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