A former head of ASIO helped the Canberra Raiders secure a $1.7 million sponsorship deal with a Chinese telco the intelligence agency believes could pose a cyber security risk to Australia.
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Raiders board member Dennis Richardson took leave without pay from his current role as Secretary of the Department of Foreign Affairs and Trade to make a presentation on the NRL club's behalf to Huawei, the company which the Federal Government has banned from involvement in the $36 billion national broadband project.
That decision to lock one of the world's biggest telco's out of the NBN project was reportedly made on advice from ASIO about potential ''cyber attacks'' emanating from China.
Mr Richardson, who was director-general of ASIO between 1996-2005 and later an ambassador to the US, is a long-time Raiders supporter.
In response to questions from The Canberra Times a spokesman for Mr Richardson said there were no implications or conflicts of interest for the DFAT boss.
''Mr Richardson has kept his fellow members of the secretaries' committee on national security and relevant ministers advised of his membership of the Raiders board, and of the Raiders' relationship with Huawei,'' he said.
''Mr Richardson, along with other board members, was aware of the initial approach to Huawei in 2011 and participated [on leave without pay] in the initial presentation to Huawei.
The presentation was made well before any concerns were raised about the Chinese telco.
It was revealed this week that the federal government had acted on ASIO's advice.
''Mr Richardson took no part in the negotiations or in any subsequent discussions with Huawei,'' Mr Richardson's spokesman told The Canberra Times.
The DFAT secretary did not try to stop the agreement from going ahead and believes it is ''good for the Raiders'', a Canberra and district team he has actively supported since 1982.
Nor does he feel his role on the Raiders' board is in any way compromised because of the deal the club has made with Huawei.
''No, not at all,'' Mr Richardson's spokesman said. ''Mr Richardson is proud to be associated with the Raiders and is delighted that they now have a major sponsor.''
The government appears to have no problem with the club dealing with Huawei.
Detailed questions to the office of Prime Minister Julia Gillard were referred to Sports Minster Kate Lundy, whose spokeswoman said: ''Questions in relation to sponsorship are a matter for the Canberra Raiders.''
The Raiders celebrated the new two-year deal yesterday, ending an uncomfortable few months without a major sponsor after the end of a relationship with union the CFMEU.
Club chief executive Don Furner said he had no concerns about the federal government's decision about Huawei and the NBN.
The Raiders' announcement yesterday might have stung cross-town rivals the ACT Brumbies, who were in talks with Huawei until late December.
The end of that deal left the Brumbies without a sponsor until it secured the University of Canberra. Despite reports the deal with the Brumbies was all but signed, Huawei's Australian chairman John Lord denied the Super Rugby club had been left at the altar.
''I can understand some of the media reported it like that, we were not that close to signing a deal [with the Brumbies]. ''We started this evaluation of many sports in about August-September last year … timing was always a criteria for us in that we didn't want to rush it.''