Flugge steps aside from AWS as IBT feels the heat

Embattled former AWB chairman Trevor Flugge today stepped aside from the board of Australian Wool Services Ltd, the fourth such decision this week, as his link with the Iraq wheat scandal generates heat for other companies in his sphere like IBT Education Ltd.

Mr Flugge's role as chairman of IBT has added fuel to two awkward issues that have generated negative publicity for the Perth-based company, including difficulties with its expansion into Canada.

In Vancouver, the Simon Fraser University senate deferred a vote on IBT's plan to establish a college for international fee-paying students earlier this month after staff and students criticised the proposal. While IBT is still pursuing the proposal, its critics claim its links with Mr Flugge will make it harder to win support.

Mr Flugge's role at IBT has also been used by critics of IBT subsidiary ACL Pty Ltd, which has an Australian government contract to resettle refugees in Australia.

Labor Senator Annette Hurley has questioned both ACL's service standards and IBT's decision to acquire ACL for $55 million soon after it commenced the government contract.

As well as taking leave from the boards of IBT and AWS (the parent of the Woolmark Company), Mr Flugge is also taking leave from the boards of Wesfarmers Ltd and Automotive Holdings Group Ltd. He remains on the board of ZBB Energy Ltd.

• A more comprehensive story on Mr Flugge's impact on IBT is on the WA Business News website and will be available in the newspaper tomorrow.