Copied below is my response from the local aquarium club board WAMAS:
Hmmmm.... it looks to me as if the fragment was taken from near the base of the colony, yes? If so, then that is where eggs would likely be located in the colony. The distal ends of branches are favoring energy into growth instead of gametogenesis.
For reference, here is a cracked branch from A. millepora the day or two before spawning (Singapore workshop). You can easily see the pink eggs in the branches:
An 8" x 10" colony would likely be large enough to see egg production.
2" from the tips is about standard to not see any egg production (as well as to not see any egg production 2" more or less around a "wound" deeper in the colony). If this was a predator/parasite, then I doubt you would see this uniform distribution throughout the colony. Also, if it was a burrowing parasite, you would almost certainly see superficial colony damage, as someone said earlier.
The "ducts" that you see are from where the polyp sits in the skeleton. Remember, each polyp is its own individual feeding/reproducing entity. From our studies with A. millepora, A. tenuis, and A. loripes, we have seen that various polyps from a given colony that produces an egg/sperm bundle can be highly variable in egg production - varying anywhere from about 8-20 eggs per bundle (more or less).
Invertebrates are also notorious for last-ditch reproduction/spawning before dying, so it's certainly not unheard of.
I doubt there is cause for alarm of a new pest to be on the lookout for.
Cheers
Mike