Pressure builds on board, minister as Powerhouse contract goes to company of former trustee

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.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’s first state significant cultural institution.David Borger, president of the board of the Museum of Applied Arts and Sciences.Sam MooyThe agency was hired in December to develop a “complex marketing, communications, and engagement plan” following a selective tender process in which, the museum confirmed, Ki Community was the only applicant.The Sydney Morning Herald had been pressing the museum and the board’s chair David Borger about the contract in the days before Havilah’s shock departure.Arts Minister John Graham and Department of Creative Industries, Tourism and Hospitality secretary Melanie Hawyes will be under pressure at Monday’s 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’s preopening spending, which is expected to surpass $100 million, inclusive of the $70 million cost of its five opening exhibitions.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.He called for the board’s co-operation in a Treasury review of the Ultimo and Parramatta projects. He said a review initiated by the department had identified “deficiencies” with three major contracts, and that security and catering needed to be “reconsidered”.Ki Community was founded by Mark Hassell, Graeme Wills, who headed Mojo Australia and is described as the company’s 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.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.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’s internal communications team.Relations between Powerhouse staff and the representatives of Ki Community have deteriorated due to frustration and disagreement over strategy and delivery.(From left) Outgoing Powerhouse Parramatta boss Lisa Havilah, and newly appointed interim chief executive Abbie Galvin, and strategic adviser Louise Herron.The Sydney Morning HeraldAs well as Ki Community’s $2 million contract, Sydney-based specialist arts agency Articulate is being paid $288,718 plus expenses for strategic public relations and communications services, and London’s Bolton & Quinn is being paid $275,000 for international public and media relations. The Powerhouse commissioned a $1.7 million-plus documentary about the new building’s construction and design for television and cinematic release.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’s delegations.“When 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,” he said in a statement.“The 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.”Ki Community bills itself as a “community of world-class creative thinkers, who see value where others don’t”. It does not list any clients on its website and it has a minimal social media presence.Graham cited “fresh allegations” in announcing Havilah’s departure, believed to relate to a year-old investigation into a protected whistleblower complaint alleging systemic cronyism and unethical procurement practices.The museum said in a statement issued before Havilah’s departure that, to meet audience targets, significant industry expertise and work had been required outside the “business as usual” work of the Powerhouse team.“Ki 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,” the museum said.Premier Chris Minns, with Parramatta MP Donna Davis (left) and Powerhouse museum chief executive Lisa Havilah (right), tours the museum in 2025.Sitthixay DitthavongAsked to specify the partnerships and advertising support it had provided, the museum responded: “Ki Community have supported Powerhouse staff to develop the marketing campaign.”According to a Powerhouse spokesperson, an eight-person assessment panel chaired by the museum’s chief operating officer had evaluated the submission on capability, methodology, strategy and risk. Panel members declared prior professional ties where relevant.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. The Ki Community tender raises broader questions around public sector procurement. The Public Service Association has complained repeatedly to Graham about the “excessive use of external labour and consultants”, and it has urged an independent financial audit of the spending and recruitment methods that had been used by senior management at the Powerhouse.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.“It’s 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.”Powerhouse said the Ki Community appointment had been fully vetted by independent probity adviser O’Connor 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 “unrelated” in-office meetings.Hassell said he had “no involvement in the tender process and [I] have had no involvement in the project”. Ki Community had provided the museum a signed declaration of his “non-involvement” in the selective request for tender response to comply with NSW government probity and conflict of interest requirements.“Ki 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,” he said. “Members of our team have been associated with and guided communication strategies and campaigns for many of Australia’s leading companies.”Be the first to know when major news happens. Sign up for breaking news alerts on email or turn on notifications in the app.From our partners