From the AFR this morning comes a scoop that the NBN is again behind schedule but more importantly:
The shortfall comes despite a last-minute rush by NBN Co to sign new contracts worth $580 million with Leighton Holdings-owned Silcar, and Downer EDI before the government business enterprise went into caretaker mode on Monday in the lead-up to the federal election on September 7.
…Contractors have privately claimed they are suffering financial losses under what they say are inadequate rates originally negotiated in 2011.
Lend Lease-Service Stream joint venture Syntheo said this week that it would pull out of the network once existing works were complete. This is understood to be a result of its ongoing struggle to meet targets and earn a profit.
…NBN Co has now awarded at least $3.2 billion worth of contracts to build the fibre network, with various Leighton Holdings subsidiaries receiving nearly half that amount.
…NBN Co is understood to have met Silcar on Sunday and Monday to sign a renewed 12-month contract with the company. It is also understood that it agreed to an increase of up to 15 per cent on the originally negotiated rates while waiving millions of dollars worth of liabilities for Silcar. This was despite it previously demanding that Syntheo pay out its own liabilities.
…The contracts were signed at the 11th hour, with approval sought from NBN Co’s board just hours before government agencies and companies entered caretaker period at 5.30pm on Monday.
Deputy Prime Minister Anthony Albanese refused to answer questions on Wednesday about whether NBN Co had forfeited its negotiating position in rushing to sign the contracts before caretaker conventions came into effect.
“NBN Co does its business . . . they’re getting on with building the national broadband network,” he said.
Anyone else get the feeling we’re being gamed?
