Whisky on ice: The downfall of Antarctica NZ's bon vivant

Sunday, 26 August 2018

Antarctica NZ boss Peter Beggs' unexpected departure has left many unanswered questions.

From toasting VIPs with Antarctic ice to his sacking last week, the sensational and sensationalist departure of Antarctica NZ chief executive Peter Beggs jeopardises the future of the Crown entity's high-powered board, and has the potential to undermine the $150m plans for Scott Base refurbishment.

August is a big month for New Zealand's Antarctic programme.

Flights to the ice start in late September and preparations that have been going on all year take on a new urgency.

This August, however, much of the attention was elsewhere as the Antarctica NZ (AntNZ) board dealt with the sacking of its charismatic chief executive Peter Beggs, who had been in the post since late 2013.

* Irate husband sparked investigation

* Antarctica NZ chief executive Peter Beggs was sacked

* Antarctica NZ chief executive resigns suddenly after boardroom discussions**

The dismissal came after a six-week trawl of Beggs' electronic communications that revealed conduct serious enough for him to be fired. The specifics of the conduct remain unknown but some of it related to his use of an AntNZ-leased apartment near the centre of Christchurch. Beggs, around 50, lives in the countryside with his wife and two children.

The sacking of the head of any Government entity is rare and usually avoided by invitations to resign combined with attractive exit packages. It saves everyone embarrassment.

In this case, the scandal has propelled Antarctica NZ, set up in 1995 to drive the country's future effort in the Ross Dependency, into the spotlight for all the wrong reasons. It has also concentrated attention on fractures in the relationships key to this country's interests on the big white continent that has such a special place in the hearts of New Zealanders.

When AntNZ chair Sir Brian Roche should be talking about how the agency is supporting important science around climate change, he is being asked for the details of why his chief executive was sacked.

The involvement of Auckland rich-listers and glamour couple Sharon Hunter and Tenby Powell has added spice to the saga, and speculation about the exact nature of their connection to the sacking will mean the story will continue to distract AntNZ from its proper work until the boil is lanced.

Hunter has been on the AntNZ board since November, 2015, and Powell was on the board when it hired Beggs in 2013.

The couple have been very successful through their merger and acquisitions firm Hunter Powell Investment Partners. They sold their house in Westmere, Auckland, last year for around $20 million – ironically the annual budget for the running of AntNZ.

It was Powell who sparked the investigation into Beggs by complaining to Roche about concerns he had about Beggs' dealings with his wife.

Hunter stood down from the board, citing family reasons, at the same time as the investigation into Beggs was under way, and was in Los Angeles with Powell when Beggs was axed.

While the public image of New Zealand's Antarctic effort is one of hardy scientists discovering the earth's secrets in the dangerous but heartachingly beautiful continent, the Beggs affair has highlighted both bitter debates over strategy and money and revealed dysfunctional relationships and feuds.

WHISKY ON THE ROCKS

The big white continent is supposed to be the last bastion of international co-operation in peaceful activities such as science and environmental protection.

Governed by the Antarctic Treaty signed in 1961, territorial claims – New Zealand has a claim on the Ross Dependency – are sidelined for the moment as countries establish their credentials with scientific research supported by continuous occupation of bases.

All the major powers are active on the continent but few have New Zealand's historical connection and reputation. Clearly, no-one's motives are entirely pure and every party has an eye on possible commercial exploitation of Antarctica's resources.

It's often not appreciated how important Antarctica is to New Zealand's foreign policy and status. The fact New Zealand is a significant player in a special part of the world allows it to build relationships that can be leveraged in other spheres.

While it is difficult to get people to speak publicly, it's clear Beggs, a former professional rugby player, was a controversial and divisive figure despite an outward charm and appearance that impressed many.

'Peter really was the man but you wondered if the smooth image was matched by ability,' one former staff member says.

His bon vivant image did not help a troubled relationship with the NZ Antarctic Research Institute, a charitable trust inside the AntNZ organisation that raises money for research, and longterm technical staff struggled with his 'unrealistic' demands.

Many working at Scott Base were perturbed by the number of 'big noters', politicians, media and commercial people, whom Beggs invited to Scott Base as though it was some sort of tourist resort. A story is told about how Beggs had Scott Base field guides collect ice from a glacier so notables could have it with their special Shackleton whisky.

Beggs also represented New Zealand on a number of bodies overseeing the Antarctic Treaty and connected protocols. He was elected to the executive body of Council of Managers of National Antarctic Programs and last year led a delegation to the Treaty Systems Committee for Environmental Protection. Next week he should have been in Virginia, US, for an Antarctic managers meeting.

He was also the main driver of a $150m redevelopment of Scott base that is now in the design phase. Staff, who want to remain anonymous, believe Beggs wanted the new base as his legacy and once it was secured he planned to move on.

No doubt Beggs' direct and business-oriented approach achieved some worthwhile successes but it won't be helpful to New Zealand's Antarctic status for partners to hear about his shenanigans and sacking.

FALL FROM GRACE

Back in late 2013 when Beggs was appointed, hopes were high.

Then AntNZ chairman Rob Fenwick said the board believed 'Peter's international private sector experience will add value to Antarctica NZ's performance in one of New Zealand's most important outposts'.

Fenwick lauded Beggs for his strong record in team leadership and his wealth of international experience, passion and enthusiasm.

Beggs was 'passionate about forming relationships' where all parties could flourish and saw relationships as 'key for the future development and learning from Antarctic science', Fenwick said.

Before taking up his post at AntNZ, Beggs ran the New Zealand office for the European Thales conglomerate, which is active in defence, transport, security and aerospace spheres.

In New Zealand it sells Smart Card ticketing systems and equipment for air traffic management and defence.

Christchurch-born Beggs left New Zealand in his 20s to work in the United Kingdom and Ireland. By 2000 he had a role in the transport division of Siemens that took him all over Europe, Asia, the Middle East and Northern Africa. In 2007 he took a top management role for Thales in Australia and then moved back to New Zealand in 2010.

Beggs's first few years with AntNZ seemed to go well. He received a plaudit from Fenwick in the agency's 2014/15 annual report and a similar pat on the back from new chairman Roche in 2015/16.

'Of note is Peter's leadership driving the organisation's commitment and attitude towards health and safety excellence, his unwavering passion for environmental stewardship and long term sustainability of our operations,' Roche said.

However any mention of Beggs in Roche's comments in the 2016/7 report was conspicuous by its absence.

Sources claim Roche's relationship with Beggs grew increasingly strained as time went on.

'Roche is very smart and very tough. He wouldn't let Peter do what he liked,' a confidential source said.

No-one close to the action was surprised to hear Beggs had sent his personal assistant to represent AntNZ at a film premiere in London without telling Roche.

ON THE CHOPPING BOARD

If the scandal is difficult for Beggs' career future, it has also not done the seven-member board any favours. It will be interesting to see how many of the board, all National Government appointees, survive the close scrutiny of the present Government.

It is understood the State Services Commission briefed ministers this week on the board's handling of the scandal.

Many will wonder why a number of them were put on the board in the first place given the science focus and small budget ($20m a year) of the organisation. Only one member has an academic science background and most have more connection to New Zealand business and sport than scientific research.

Given the Antarctic's $235m contribution to the Canterbury economy, some might wonder why no Christchurch people are on the board.

A board position on AntNZ is probably one of the more sought-after director roles in the public sphere. Duties are not onerous (unless you have to sack your chief executive) and it's a sure way of getting down to the ice.

'The board is a place to hobnob and raise your profile,' one Antarctic veteran said.

Chairman Roche and board members Sharon Hunter and Dame Therese Walsh all had roles in bringing the Rugby World Cup 2011 to New Zealand. Rob Morrison, appointed in 2015, is a former chair of Kiwibank, owned by NZ Post Group of which Roche was the chief executive.

The board, perhaps unfairly, will be blamed for not nipping problems with Beggs in the bud, and that feeling will persist as further information is divulged.

The fallout from the sacking of Beggs and the way it has crystallised some of the issues for the New Zealand Antarctic effort will be dramatic. The next chief executive will be a crucial appointment and no doubt a re–calibration of New Zealand's Antarctic programme will follow.