Key Points
- Home Affairs Minister Clare O'Neil has released a report into the history of offshore processing contracts.
- It found companies suspected of bribery and money laundering won government contracts for offshore processing.
- O'Neil said the report left the door open to criminal investigations but its author said charges are 'unlikely'.
Public servants who gave lucrative government contracts to companies suspected of bribery and money laundering should be held accountable but the man who put their work under the microscope admits that's unlikely to happen.
Home Affairs Minister Clare O'Neil on Monday released a report by former ASIO boss Dennis Richardson into the history of offshore processing contracts.
The review looked at allegations the Department of Home Affairs used contractors to deliver regional processing services that were suspected of misusing taxpayer money in Nauru and Papua New Guinea.
Richardson excoriated the department's processes for entering contracts.
"Proper due diligence was lacking when it came to contracts with relatively small companies with limited or no public profile, and where operations were to be in high-risk environments," he said.
This resulted in Home Affairs having contracts with a company whose owners were suspected of seeking to circumvent US sanctions against Iran and with suspicious money movement suggesting laundering and bribery.
Companies under investigation by the AFP also had contracts with the department, as did a company whose CEO was being investigated for possible drugs and arms smuggling into Australia.
Report author says criminal charges would require 'wisdom of Solomon'
Speaking after the report's release, Richardson said people should be held accountable if individual wrongdoing was found.
"If you could identify one, two, three, four officials who were clearly responsible in their own right, yes," he told AAP.
"However, that is not the case — you have officials who have come and gone over the years, you have officials across different organisations.
"You would need the wisdom of Solomon to sort it out if you want to go down that track."
Greens senator Nick McKim described the findings as "egregious failures" and flayed the department for incompetence as he renewed calls for a royal commission into offshore detention.
Decisions displayed a 'lack of curiosity and critical thinking'
Richardson said the decision to award contracts to shonky providers was one of haste and "a lack of curiosity and critical thinking" as well as agencies not working together rather than incompetence.
The department was operating in a high-pressure environment where time was of the essence and even in hindsight, it may have had to enter into contracts with the companies anyway.
"However, with proper due diligence, Home Affairs could have considered alternative suppliers, and, if this was not possible, the implementation of mitigating measures," the report found.
Regarding a regional processing agreement with Management and Training Corporation, Richardson found the government could have confidence in the existing contract.
The company had been paid more than $420 million as of August 30, 2023.
The report found no evidence of ministerial involvement in the regional processing contract or procurement decisions.
No individuals were referred to the Australian Federal Police or the National Anti-Corruption Commission.
The contact details of three people were passed on, with their consent.
O'Neil laid blame at the feet of Opposition leader Peter Dutton, former home affairs minister, questioning what he knew about criminal activity and when.
"The Australian Federal Police and where appropriate, the National Anti-Corruption Commission, will investigate those claims," O'Neil said.
Coalition senator James Paterson shifted blame to public servants involved.
"It is always the case ministers are not involved and should not be involved directly in contracting," he told reporters in Canberra.
"The responsibility for this, as Mr Richardson found, falls with the department," said Paterson, who also noted the review found the government could have confidence in the existing contract and didn't identify any deliberate wrongdoing.
The Opposition has also questioned why O'Neil received the report on 10 October 2023 but only released it on Monday.
Home Affairs Department says it always learns from past mistakes
The department dealt with historic problems in contracts and learnt from past mistakes, Home Affairs head Stephanie Foster told a Senate hearing.
"At the risk of sounding glib, this is an area where we should always be vigilant and should always be seeking to make improvements," she said.
The review made four recommendations, one of which was redacted.
One recommendation called for the department to beef up its integrity risk process and culture to better inform procurement and contract decision-making for regional processing arrangements.
This should be done by more carefully considering the environment in which a procurement is conducted or a contract is delivered, and the ethical conduct of tenderers, suppliers and supply chains.
