The Minister for Public Enterprise, Ms O'Rourke, may be putting a brave face on it but there can be no denying the Government's acute embarrassment about the resignation of Mr Brian Thompson as chairman of Telecom Eireann, followed so swiftly by Mr Ron Bolger's decision last night to step down as deputy chairman. Mr Thompson, who is becoming chairman and chief executive of Global TeleSystems (GTS), has resigned because of the potential for a conflict of interest - GTS has a presence in this State through a company previously known as ITL.
The timing of the affair could scarcely be worse. Mr Thompson has departed just as Telecom seeks to build support for this summer's flotation through a series of presentations to institutional investors. The former chairman, whose appointment was trumpeted by Ms O'Rourke as an audacious coup just two months ago, was expected to be the star turn on the road-show. Instead, he has departed in circumstances which might best be described as shambolic.
In her defence, Ms O'Rourke says that the £7,500 honorarium paid to the Telecom chairman, gave her few options when Mr Thompson received a better offer. But it is not unreasonable to ask why the Minister did not seek some assurances about Mr Thompson's longer-term commitment to Telecom before appointing him in January? This was not an unimportant appointment to some government quango; it was one of critical importance to a company with an estimated stock-market valuation of some £5 billion. At the very least, Ms O'Rourke, should have satisfied herself that Mr Thompson was available to guide the company through flotation.
Ms O'Rourke originally appointed Mr Thompson and moved to replace five of the six Government-appointed directors at Telecom after she was advised that the appointment of a heavyweight board - with experience of flotation and/or a strong track record in the telecommunications industry - was the best means of maximising the price for Telecom shares. The Minister appeared to be setting a new, much more rigorous standard for semi-state board appointments: the need for relevant experience in the sector.
The elevation of Mr Ray MacSharry to the chairmanship of Telecom does not appear to meet this criteria. Mr MacSharry is a figure of some substance as a former EU Commissioner but even he would not claim any special expertise in either telecommunications or flotations. Ms O'Rourke can hardly complain when the Opposition accuses her of political cronyism. Mr MacSharry, for all his virtues, does not meet the criteria she herself set for the chairmanship of Telecom. In these circumstances, it is difficult not to feel some sympathy for Mr Bolger. Despite his telecoms experience he was replaced by Mr Thompson on the grounds of international experience but he has again lost out, this time to Mr MacSharry.
It is to be hoped that the events of this week will not change market sentiment towards the flotation. There are good grounds for optimism. Mr MacSharry will face a steep learning curve but he is more than capable of confounding his political critics. Telecom may yet emerge relatively unscathed from this week's events. But the untidy business raises questions about Ms O'Rourke's political judgment.