Kate Lundy will start her three-year term next week. The appointment was signed off on by Skills Minister Chris Steel just over a year ago, on May 17 2021.

Ms Lundy, who served as an ACT senator from 1996 to 2015, is currently the deputy chair, and was appointed to this position in April 2020.

Mr Steel said last week he expected the new chair would help reset the board, which has come under fire for its role in awarding more than $8.5 million in contracts to "complexity and systems thinker" Patrick Hollingworth.

Opposition Leader Elizabeth Lee said she was concerned about the appointment considering Ms Lundy had been the deputy chair when a number of the contracts had been signed.

"Appointing the deputy chair, a former Labor senator, who has been on the board for most of these contracts to the position of chair raises serious concerns," Ms Lee said.

Ms Lundy has been contacted for comment.

Current CIT board chair Craig Sloan will finish his seven-year term next week. Mr Sloan said last week the board could not guarantee the latest nearly $5 million contract represented value for money.

He told Mr Steel the board would commission an independent inquiry into the procurement process for the contract.

But Mr Steel was left unimpressed by the board's explanation. He told the board he would issue ministerial directions that would order the CIT board to address governance at the institute.

THE STORY SO FAR:

He said the institute's reputation had been "seriously damaged" as a result of the contracts and expected the board would be able to "reset" when Ms Lundy starts as chair.

He told The Canberra Times last week that he did not believe the board needed a complete overhaul but it did need new members. He said he could only issue broad directions to the board.

"I think it's important that there are some new members but also some existing members, including the chair going forward, to reset the situation with CIT and to repair the reputational damage that has occurred as a result of this matter," Ms Steel said.

"I have every expectation that [Ms Lundy] will get in there and start working on these governance and risk issues to make sure that the board has a better understanding, particularly for large contracts, of what CIT is intending to procure."

The explanatory statement to the appointment of Ms Lundy as the chair said Mr Steel had consulted with the Legislative Assembly's standing committee on education, employment and youth affairs. The committee, which includes one Liberal member, made no comment on the matter.

"Kate Lundy has expertise and knowledge in social policy issues, vocational education and training, and governance," the statement said.

Ms Lee again raised concerns about Mr Steel's role in the saga. She has repeatedly called for him to step down.

"Since this issue was brought to light, the minister has attempted to evade scrutiny by saying he is at arm's length from CIT but we know that is not the case," she said.

"With this appointment being made on May 17 2021, over a year ago, the minister's claims last week that he is taking strong action including refreshing the board is simply not true.

"In responding to the CIT board last week, the minister has said he was underwhelmed with their response to his questions, but it is the Canberra public that are rightfully underwhelmed with the minister's response and the lack of accountability regarding these contracts."

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