McGowan Tipped for Southern Cross Board Role Amid Integrity Concerns

Former Western Australian Premier Mark McGowan is poised to join the board of media giant Southern Cross Media Group, following a merger with Seven West Media, a company controlled by billionaire Kerry Stokes.

Mr. McGowan stepped down from public office in 2023, citing exhaustion after leading the state through the COVID-19 pandemic. He was a political ally of Mr. Stokes, who holds a 23% stake in Southern Cross, chaired by his son Ryan Stokes.

Appointment Raises Integrity Concerns

If appointed, Mr. McGowan will join a small group of former political leaders who have taken on board roles at listed media companies. The Centre for Public Integrity chair, Anthony Whealy KC, has raised concerns about the potential impact on integrity, given Mr. McGowan's influential position as former premier.

"Clearly with Mr. McGowan there's been a number of years since he was the premier, but nevertheless, there remains a concern because he was such an influential politician and so powerful and so important within the state of Western Australia that his position with the Stokes company [Southern Cross] gives him a particular connection to the Western Australian government and a particular way of influence that other people would not have,"

Mr. Whealy added that the appointment could create an impression of undue influence.

McGowan's Relationship with Stokes

Mr. McGowan's relationship with Mr. Stokes was scrutinized during a 2022 defamation battle with coal billionaire Clive Palmer. The court heard that Mr. McGowan and Mr. Stokes exchanged text messages, including one where Mr. Stokes praised Mr. McGowan for introducing legislation that would prevent Mr. Palmer from pursuing commercial arbitration damages.

"Mark, well done. I think no-one else could have achieved the legislation in the speed you did,"

Mr. McGowan has previously defended his relationship with Mr. Stokes, stating that he had contact with many businesspeople in his capacity as minister for state development and premier.

Controversial Gas Deal

In 2020, Mr. McGowan's government granted a lucrative exemption to the Waitsia gas project, backed by Mr. Stokes, allowing it to export up to 50% of its gas production. The decision was criticized by peak body Australian Energy Producers, and former Liberal premier Colin Barnett described it as "unprecedented" special treatment.

The base rate for non-executive directors at Southern Cross is $135,000 per year. Mr. McGowan and Southern Cross did not respond to questions, but it is understood that an announcement on the board appointments is planned for later this week.