Lisa Havilah, chief executive of the Powerhouse Museum, has stepped aside amid an ongoing investigation into governance and procurement practices just weeks before the scheduled opening of the new Powerhouse Parramatta museum. The announcement was made on Thursday by NSW Arts Minister John Graham, less than three months prior to the $915 million facility’s grand opening on November 7.

Powerhouse Parramatta, a 33,000-square-meter museum, represents the culmination of more than a decade of planning and redevelopment. The institution has been undergoing a transformative $1.2 billion overhaul spanning its Sydney locations, including the construction of the new museum in Parramatta and upgrades to its historic Ultimo site.

Havilah’s departure follows months of scrutiny stemming from a whistleblower complaint lodged under the Public Interest Disclosure Act. The complaint reportedly raises concerns about alleged irregularities in hiring and procurement procedures. NSW Department of Creative Industries secretary Melanie Hawse, in a letter to staff, confirmed Havilah’s decision to step aside during the investigation, emphasizing that preparations for the museum’s opening would continue unaffected.

“The matters under consideration are complex and involve multiple lines of inquiry,” a spokesperson for the Department of Creative Industries, Tourism, Hospitality and Sport said. “The department has a responsibility to address these matters with due diligence and procedural fairness.”

Havilah has led the museum’s significant redevelopment efforts for seven years, overseeing what has been described as its most consequential transformation. The relocation of the museum’s key operations from Ultimo to Parramatta was initially announced by then-NSW Premier Mike Baird in 2014. However, the project has faced criticism and controversy throughout its development.

A parliamentary inquiry in 2016 found that the move to Parramatta was based on “poor planning and advice, a flawed business case and insufficient community consultation.” Additionally, the construction of the new museum required the demolition of Willow Grove, a 19th-century Italianate villa with historical significance, sparking further debate over heritage preservation in Parramatta.

In the interim, NSW Government Architect Abbie Galvin has been appointed acting chief executive of the Powerhouse, while former Sydney Opera House chief executive Louise Herron will serve as a strategic adviser during the ongoing investigation. The NSW government has pledged to complete its review in a manner consistent with procedural fairness before any further steps are taken.

The Powerhouse Parramatta opening, which was recently confirmed with a full program release, remains scheduled for early November as planned.