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Writer's pictureFlow Australia

Offshore detention contracts linked to suspected crimes

A review into claims against the Home Affairs department found it engaged in contracts with companies suspected of money laundering, bribery and other crimes



KEY FINDINGS FROM REVIEW:


* Under Australia's offshore processing system, the government's home affairs department had contracts with companies suspected of money laundering, bribery, drugs and arms smuggling, corruption, and breaching sanctions against Iran


* Home Affairs may have been forced to enter these contracts as it was operating in a high pressure environment, but there was a lack of proper due diligence regardless


* There was no evidence of ministerial involvement in the contract or procurement decisions and no matter of deliberate wrongdoing or criminality


* The flow of information from the Australian Federal Police to the Department of Home Affairs was inadequate at times


* No individuals were referred to the Australian Federal Police or the National-Anti Corruption Commission, though three consented to having their details passed to these agencies 


RECOMMENDATIONS


* The home affairs department should undertake risk-informed due diligence when procuring and managing contracts, especially when engaging with small companies in risky environments


* It should also consider the environment a contract is delivered and the ethical conduct of tenderers, suppliers and supply chains


* The department should facilitate and promote a more open environment to encourage collaboration, cooperation and information sharing


* A protocol should be developed for lawfully sharing law enforcement and intelligence information with federal government entities as this would help inform procurement and contract decisions in high-risk environments


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