The AFP investigation and the termination of the process just continues to add to the anxiety and uncertainty many ABC staff face when considering their careers with the broadcaster.
It is expected that Government will make an announcement on the future of the Aus Net tender in March 2012. lets hope that instead of a tender process the ABC will be able to be provided the funding to continue Aus Net for the next 10 years.
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ABC Net - 9th November 2011
Sky News has slammed the Federal Government's decision to cancel the tender process for the $223 million Australia Network contract.
Communications Minister Stephen Conroy said leaks to the media meant a fair outcome could not be guaranteed and the Australian Federal Police had been called in to investigate.
But Sky says the cancellation is premature while the police inquiry is underway.
Its bid was being managed through Australia News Channel (ACN), which owns the Sky channels in Australia and New Zealand and is itself owned by Seven West Media, Nine Entertainment Company and British Sky Broadcasting.
"Australia News Channel is surprised by the Government's extraordinary action in cancelling the second tender process for the Australia Network and is currently considering its options," Sky News chief and ACN head Angelos Frangopoulos said in a statement.
The tender process has been conducted twice over more than nine months, with ANC saying it devoted significant resources to the process.
"We are concerned that both tender outcomes were rejected after each of the tenders had closed and the independent tender evaluation board had delivered its recommendations," Mr Frangopoulos said.
He has called on Senator Conroy to publish the terms of his referral to the AFP.
"We also call on the Government to release all tender evaluation reports, recommendations and associated documents in the interests of transparency," he said.
While the review of the tender process was welcome, all of the alleged breaches must be considered, he said.
"It's clear the current service has failed in its task and we see an opportunity to vastly improve Australia Network within existing funding levels and make it a network that its target audience wants to watch," Mr Frangopoulos said.
Defending the decision
Prime Minister Julia Gillard has defended the Government's decision, saying it was the right thing to do."There's an Australian Federal Police investigation. We received very clear advice from the Australian Government solicitor and we've acted in accordance with it," she said.
The Greens and the Opposition earlier pushed Senator Conroy to explain the decision.
Senator Conroy said the Government acted in the public interest.
"The Government is extremely disappointed that these leaks have occurred and the tender process has been compromised, however the Government has taken the decision that it is in the pubic interest that the process be terminated," he said.
"To put it simply, it is no longer possible to be certain what each knew about their rival's bid."
The Opposition says it is another example of the Government's incompetence.
The ABC currently hosts the service, which is designed to showcase Australia's democratic values to TV viewers in the Asia-Pacific, but it was competing with Sky News to retain it.
The ABC will keep operating the service until August next year while the Government resolves the issue.
