Penny Wong says it’s ‘deeply concerning’ a company with ‘such a poor track record’ was awarded a lucrative sum through closed tender

This article is more than 1 year old

This article is more than 1 year old

Penny Wong has indicated Labor will target the Paladin offshore detention security contract in Senate estimates this week, accusing the government of failing to explain why the company was awarded $420m in contracts through closed tender.

The Australian Financial Review has reported that Paladin Group’s $420m of contracts to provide security to refugees on Manus Island in Papua New Guinea was extended by the home affairs department in January after a closed tender process.

On Sunday the attorney general, Christian Porter, defended the home affairs minister Peter Dutton, who has said he had “no sight” of the tender process. Porter told ABC’s Insiders that “standard procurement processes are often at arms-length from the minister”.

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The host Barrie Cassidy put to him the contracts were unusual given it is a “little-known Singapore company with a registered address on Kangaroo Island” which is a beach shack at the end of a dirt road.

“This was the subject of a fund independent commonwealth procurement process and I’m sure that the claims will be investigated,” Porter replied.

Wong told reporters in Adelaide the Paladin contract had “a lot of questions around it” and it was “deeply concerning” a company with “such a poor track record” was awarded $420m.

Wong accused Porter of giving answers that were “not consistent” with Dutton’s because “this went to a closed tender – not an open tender, [it was] not an open competitive process”.

Wong accused Dutton of “trying to wash [his] hands of it”. “Tomorrow is Senate estimates – what I’d say to the government is: stop hiding.

“Why don’t you front up and tell the truth about why that contract is awarded in such circumstances, why it went to closed tender?”

Porter also continued the Morrison government’s attacks that the medevac bill, which passed parliament over government objections, represents an incentive for people-smuggling operations to Australia, despite the fact the new medical assessment procedures only apply to the current cohort of people in offshore detention.

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The medevac bill sets up a process for an independent medical panel to force a medical transfer from offshore detention unless the minister overrules it on security grounds or if the person has a “substantial criminal record”.

Porter said that although the “primary legal observation to make [is] that the legislation is not prospective” the fact that Labor had “softened” the rules was “another observation that’s no less important and no less real”.

“And there is some implausibility about the notion that they wouldn’t take that opportunity again if in government for a future cohort.

“And both of those observations are as real as each other.”

Labor has insisted that the legal changes only apply to asylum seekers that are already on Manus Island or Nauru, meaning there is no incentive for asylum seekers to attempt to come to Australia now.

Porter said the “complete discretion” of the home affairs minister to refuse medical transfers had “now totally changed” and the government is “very concerned” that people “reasonably suspected” of criminal conduct – but not convicted – cannot be refused.

Porter defended the government’s decision to reopen the Christmas Island detention centre, which has lead some critics to accuse it of encouraging people smugglers to restart their trade by suggesting Australia’s borders were weakened as a result.

Independent MP Kerryn Phelps – the architect of the medevac bill – has responded to reports of potential future people-smuggling operations by noting it was the Liberal Party who “sent up the signal that Christmas Island is reopening”.

Prof Kerryn Phelps AM (@drkerrynphelps) And who sent up the signal that Christmas Island was reopening? @LiberalAus @ScottMorrisonMP https://t.co/prYL2TjkSz

Porter said it was a “rational” response to deal with the expected “influx of hundreds of people” that may transfer out of offshore detention for medical treatment.

Despite fears of future boat arrivals, six refugees interviewed by Guardian Australia said that neither they nor anyone they knew would be willing to attempt the journey.

On Sunday the prime minister’s office released a two-minute video message from Morrison, expected to be translated into 15 languages and aired in 10 countries considered asylum-seeker hot spots.

“Make no mistake, if you attempt to come to Australia illegally by boat, you will not succeed,” the prime minister says.

“So do not waste your money or risk your life, or anyone else’s life, for nothing.”