Home Affairs contracts awarded to companies with suspected links to drugs, firearms and bribery
A review has found Australia awarded offshore asylum seeker processing centre contracts to companies with suspected links to arms and drug smuggling, corruption and bribery.
The federal government launched the review last year after questions were raised about the Home Affairs department's conduct while the Coalition was in power, including why it gave a contract to a company whose director was convicted of bribing foreign officials.
Former secretary of the Department of Defence Dennis Richardson was appointed to conduct the review and found Home Affairs lacked "proper due diligence".
"The department was operating within an environment of high pressure where time was often of the essence. However, with proper due diligence, Home Affairs could have considered alternative suppliers, and, if this was not possible, the implementation of mitigating measures. But this was not done," the review found.
"Intelligence and other information, which was readily available, was not accessed. As a consequence, integrity risks were not identified."
The review found coordination, communication and information flows within Home Affairs were inadequate, as was communication between Home Affairs and other areas of government, including the Australian Federal Police (AFP).
"In one instance, the AFP did not advise Home Affairs over a three year period that it was investigating an individual who it knew had a contractual relationship with Home Affairs," the review found.
According to the review, Home Affairs had contractual relationships with:
A company whose owners were suspected, through the ownership of another company, of seeking to circumvent US sanctions against Iran, and had extensive suspicious money movements suggesting money laundering, bribery and other criminal activity
Companies under investigation by the AFP
A company whose CEO was being investigated for possible drugs and arms smuggling into Australia. Although, at the time, it would have been unrealistic to have expected those responsible for contract and procurement to be aware of this
An enterprise suspected of corruption
Mr Richardson made several recommendations, including that Home Affairs "enhance its integrity risk process and culture to better inform procurement and contract decision-making for regional processing arrangements".
"A failure to do this exposes the Commonwealth to unacceptable risks and to reputational damage," Mr Richardson said.
He also recommended "Home Affairs should foster and promote an 'ask and tell' operating environment that encourages collaboration, cooperation, proactive enquiry and information sharing."
https://www.abc.net.au/news/2024-02-12/home-affairs-contracts-awarded-to-companies-with-links-to-drugs/103455026